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Softa [21]
3 years ago
8

Suppose Ivy invests $5,000 in her jewelry stand at the local shopping mall and her investment earns her $550. What is Ivy's retu

rn on investment?
Business
1 answer:
artcher [175]3 years ago
5 0

Answer:

11%

Explanation:

The returns on an investment can be calculated as:

r=\frac{I}{P}\cdot 100

where:

r is the return

I is the interest earned in the investment

P is the principal (the amount of money invested)

In this problem for Ivy, we have:

P = $5,000 (amount invested by Ivy)

I = $550 (interest earned by Ivy)

Therefore, the return on the investment is:

r=\frac{550}{5000}\cdot 100 = 0.11\cdot 100 = 11\%

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