Question

Josh invested $12,000 in mutual funds and received a sum of $20,000 at the end of the investment period. Calculate the ROI. . A.56.54%. B.66.67%. C.40.00%

Answer 1

ROI stands for return on investment. It is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments. It is calculated by dividing the net profit over the cost of investment times 100%.

ROI = (20000 - 12000) / 12000 x 100% = 66.67% ----> OPTION B

Answer 2

The rate of interest earn by Josh is 66.67% during investment period.

B is correct.

Explanation:

John invested $12,000 in mutual funds and received a sum of $20,000 at end of investment period.

First we calculate the interest earn from mutual funds.

Interest = Received - Investment

Interest = 20000 - 12000 = $8,000

Rate of interest (ROI)
`=(Interest)/(Investment)* 100`

ROI
`=(8000)/(12000)* 100`

ROI = 66.67%

Hence, The rate of interest earn by Josh is 66.67% during investment period.