Question

Andrew invested $20,000 in mutual funds and received a sum of $35,000 at the end of the investment period. Calculate the ROI.

Answer 1

Answer: $15,000

As $35,000-$20,000=$15,000.

That's basically the profit he had made, or the return on his investment (ROI).

As he already had $20,000, he had "only" made $15,000.