A security purchased today for $200 will pay $1,400 in 20 years. The return on investment (ROI) for this security is

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for the Accounting for Planning and Control Test 1 with our comprehensive quiz. Utilize flashcards and multiple-choice questions to solidify your understanding. Each question includes hints and detailed explanations to ensure you are exam-ready!

Multiple Choice

A security purchased today for $200 will pay $1,400 in 20 years. The return on investment (ROI) for this security is

Explanation:
ROI measures how much profit you earn per dollar invested, expressed as a percentage. Here you invest 200 and will receive 1,400, so the profit is 1,400 − 200 = 1,200. Dividing the profit by the initial investment gives 1,200 ÷ 200 = 6. Converting to a percentage: 6 × 100% = 600%. So the ROI is 600%.

ROI measures how much profit you earn per dollar invested, expressed as a percentage. Here you invest 200 and will receive 1,400, so the profit is 1,400 − 200 = 1,200. Dividing the profit by the initial investment gives 1,200 ÷ 200 = 6. Converting to a percentage: 6 × 100% = 600%. So the ROI is 600%.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy