Calculate the ROI for the following example and write the value in the space provided.

2 answers:

7 0

She invested 10000 for a period of 6 years.
At the end of the 6 year period, she has 25000
The return on her investment is equal to (25000 - 10000) / 10000.
This would be equal to 15000 / 10000 = 1.5
The percent return on her investment would be 1.5 * 100 = 150%.
this does not take into account the time it took to get that return.
in order to do that, you would want to find the return on investment per year.
That return would be calculated:
The general formula would be f = p * (1 + r) ^ n
f is the future value
p is the present value
r is the rate of return each year.
n is the number of years.
the formula becomes 25000 = 10000 * (1+r)^6
divide both sides of this equation by 10000 to get:
25000/10000 = (1+r)^6

take the log of both sides of this equation to get:
log(25000/10000) = log((1+r)^6)
this is equivalent to log(25000/10000) = 6 * log(1+r)
divide both sides of this equation by 6 to get log(1+r) = log(25000/10000)/6
this results in log(1+r) = .0663233348
this is true if and only if 10^.0663233348 = 1+r
subtract 1 from both sides of this equation to get:
10^.0663233348 - 1 = r which results in r = .1649930508
that would be the return on investment per year.
to see if this is correct, replace r in the equation of f = p * (1+r)^n to get:
25000 = 10000 * (1.1649930508)^6 = 25000.
the overall return on the investment over a period of 6 years is 150%.
the average return on the investment per year is 16.49930508%
if you want to round the percent solution to 2 decimal digits, then the average return on the investment per year is 16.50%.

ira [324]3 years ago

7 0

Answer:

ROI divided by number of years = annualized ROI

150 % / 6 = 25%

Step-by-step explanation:

You might be interested in

Find the value of StartFraction partial derivative z Over partial derivative x EndFraction at the point (1,1,1) if the equation

scZoUnD [109]

Looks like the given curve is

5xy + z⁴x - 3yz = 3

Differentiate both sides with respect to x :

5y + 4z³x ∂z/∂x + z⁴ - 3y ∂z/∂x = 0

Solve for ∂z/∂x :

(4z³x - 3y) ∂z/∂x = - (5y + z⁴)

∂z/∂x = - (5y + z⁴) / (4z³x - 3y)

At the point (1, 1, 1), this derivative is

∂z/∂x (1, 1, 1) = - (5 + 1) / (4 - 3) = -6

4 0

3 years ago

How to solve systems of linear equations

Mama L [17]

Answer:

In mathematics and linear algebra, a system of linear equations, also known as a linear system of equations or simply a linear system, is a set of linear equations (that is, a system of equations in which each equation is first degree).

An example of a linear system of equations would be the following:

$\left \{ {{4x+3y=18} \atop {5x-6y=3}} \right.$

Methods of solving systems of linear equations

Solve a system of linear equations is to find all their solutions.

The methods of equalization, substitution and reduction consist of finding and solving, for each of the unknowns, an equation with that unknown and with no other.

Substitution method

The substitution method consists in clearing one of the equations with any unknown, preferably the one with the lowest coefficient, and then substitute it in another equation for its value.

In case of systems with more than two unknowns, the selected one must be replaced by its equivalent value in all the equations except the one we have cleared it. At that moment, we will have a system with an equation and an unknown less than the initial one, in which we can continue applying this method repeatedly.

Equalization method

The equalization method can be understood as a particular case of the substitution method in which the same incognita is solved in two equations and then the right part of both equations are equated with each other.

Reduction method

This method is mostly used in linear systems, with few cases in which it is used to solve non-linear systems. The procedure, designed for systems with two equations and unknowns, consists of transforming one of the equations (generally, by products), so that we obtain two equations in which the same unknown appears with the same coefficient and different sign. Next, both equations are added, thus producing the reduction or cancellation of said unknown, thus obtaining an equation with a single unknown, where the resolution method is simple.

7 0

4 years ago

Find the mean of the integers 44,63,-17,28,-30,-24,19,51,-8

scoundrel [369]

Answer:

Mean: 14

Step-by-step explanation:

(44+63-17+28-30-24+19+51-8)/9 = 126/9

= 14

6 0

3 years ago

Work out 3 /5 ÷ 6 /7 Give your answer as a fraction in its simplest form.