Question

An investor invests $50,000 in a new business. In three years, the investor sells her interest in the business for $75,000. What is her return on investment?

Answer 1

Answer:

The return on investment is 50%

Explanation:

The computation of the return on investment is shown below:

As we know that

Return on investment is

= Return ÷ investment made

= ($75,000 - $50,000) ÷ ($50,000)

= ($25,000) ÷ ($50,000)

= 50%

Hence, the return on investment is 50%

We simply applied the above formula so that the correct value could come

And, the same is to be considered