Compute the return on investment (rounded to nearest percent)for the Tim Tom investment center from the information given below.
A)21%
B)18%
C)15%
D)12%

Question

Compute the return on investment (rounded to nearest percent)for the Tim Tom investment center from the information given below. 
A)21% 
B)18% 
C)15% 
D)12%

Quizplus · Accepted Answer

To calculate the return on investment, we need to divide the profit by the initial investment and multiply by 100. From the information given, the total profit for the year is $50,000 and the initial investment was $240,000. Therefore, the return on investment is (50,000/240,000) x 100 = 20.83% which, rounded to the nearest percent, is 21%. Therefore, the best choice is A) 21%.

Compute the Return on Investment (Rounded to Nearest Percent)for the Tim