Answer :
Given:
Initial Investment = 10,000
Total profit = 25,000
Total number of years = 5 years
Return on Investment = Gain from Investment - Cost of Investment
cost of investment
ROI = (25,000 - 10,000) / 10,000 = 15,000/10,000 = 1.5 x 100% = 150%
ROI = 150% ÷ 5 years = 30% per year.
Initial Investment = 10,000
Total profit = 25,000
Total number of years = 5 years
Return on Investment = Gain from Investment - Cost of Investment
cost of investment
ROI = (25,000 - 10,000) / 10,000 = 15,000/10,000 = 1.5 x 100% = 150%
ROI = 150% ÷ 5 years = 30% per year.