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If a company wants to achieve a 15% return on investment (ROI) and the total inv
If a company wants to achieve a 15% return on investment (ROI) and the total investment is $200,000, what is the expected profit?
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If a company wants to achieve a 15% return on investment (ROI) and the total investment is $200,000, what is the expected profit?
$25,000
$30,000
$35,000
$40,000
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Expected profit is calculated as ROI * Total Investment. Here, 15% of $200,000 is $30,000.
Questions & Step-by-step Solutions
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Q
Q: If a company wants to achieve a 15% return on investment (ROI) and the total investment is $200,000, what is the expected profit?
Solution:
Expected profit is calculated as ROI * Total Investment. Here, 15% of $200,000 is $30,000.
Steps: 6
Show Steps
Step 1: Understand the terms (ROI and Total Investment).
Step 2: Identify the values given (ROI = 15%, Total Investment = $200,000).
Step 3: Calculate the expected profit using the formula: Expected Profit = ROI * Total Investment.
Step 4: Plug in the numbers: Expected Profit = 0.15 * $200,000.
Step 5: Do the math: 0.15 * $200,000 = $30,000.
Step 6: State the expected profit: The expected profit is $30,000.
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