Question

A company made a profit of $75,000 over a period of 6 years on an initial investment of $15,000. What is its annualized ROI?

Answer 1

83.33%

Explanation:

Answer 2

The formula in getting the ROI or the Return on Investment is ROI = Net Profit/ Total Investment x 100. Below is the solution:

ROI = $ 75,000/$1500 x 100
ROI = $ 5 x 100
ROI = $ 500

You will then divide the $ 500 by 6 to get the ROI per year which is equals to $83.33