During the past 12 months,the Platypus Corporation had a net profit of $50 000.What is the amount of the investment if the return on investment is 20%?
A)$100 000
B)$200 000
C)$250 000
D)$500 000

Question

Quizplus · Accepted Answer

The formula for calculating return on investment is ROI = (Net Profit / Investment) x 100.

Substituting the given values, 
20 = (50 000 / Investment) x 100

Solving for Investment, 
Investment = (50 000 / 20) x 100

Investment = $250 000

Therefore, the answer is C - $250 000.

During the Past 12 Months,the Platypus Corporation Had a Net