Question

With a $230,000 annual profit achieved from a $2,000,000 investment, the return on investment (ROI%) for a business would be

Answer 1

11.5%

Explanation:

You want to know the ROI represented by a profit of $230,000 on an investment of $2,000,000.

ROI

The return on investment is the ratio of profit (return) to the investment:

ROI = profit/investment

ROI = $230,000/$2,000,000 = 0.23/2 = 0.115

ROI = 11.5%

The return on investment would be 11.5%.