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Laverna invested $4,000 in bonds. The bonds matured to a value of $4,900 after 3 years.What was Laverna's return on investment after 3 years?Round to the nearest tenth of a percent, if necessary.

Respuesta :

The return on investment (ROI) is given by:

[tex]_{\text{ }}ROI=\frac{Net_{\text{ }}return_{\text{ }}on_{\text{ }}investment}{_{\text{ }}Cost_{\text{ }}of_{\text{ }}_{\text{ }}investment}\text{ }_{}\times100[/tex]

Where:

Net return on investment = $4900 - $4000 = $900

Cost of investment = $4000

Therefore:

[tex]_{\text{ }}ROI=\frac{900}{4000}\times100=22.5[/tex]

Answer:

22.5%

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