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If an investment of $50,000 generates a net profit of $10,000, what is the ROI?
If an investment of $50,000 generates a net profit of $10,000, what is the ROI?
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Q1
If an investment of $50,000 generates a net profit of $10,000, what is the ROI?
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ROI = (10,000 / 50,000) * 100 = 20%.
Questions & Step-by-step Solutions
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Q: If an investment of $50,000 generates a net profit of $10,000, what is the ROI?
Solution:
ROI = (10,000 / 50,000) * 100 = 20%.
Steps: 7
Show Steps
Step 1: Identify the net profit from the investment. In this case, the net profit is $10,000.
Step 2: Identify the total investment amount. Here, the total investment is $50,000.
Step 3: Use the ROI formula, which is ROI = (Net Profit / Total Investment) * 100.
Step 4: Plug in the numbers: ROI = (10,000 / 50,000) * 100.
Step 5: Calculate the division: 10,000 divided by 50,000 equals 0.2.
Step 6: Multiply the result by 100 to convert it to a percentage: 0.2 * 100 equals 20%.
Step 7: Conclude that the ROI is 20%.
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