Some investment questions

[AREZZO]

Hello, I just have a few qestions on calulating ROI

If you are investing $1,000 and you profit $1,500 and made the $1,000 investment back. So you come up with $2,500. what would be your ROI?

Thank you











I am having touble understaing the formula. Thanks

[TechAfric]

ROI=net profit(i.e. total revenue-total costs-tax) divided by total investment. This is often corrected for inflation. For your example,neglecting taxes and other costs, the ROI is 150%. A very good investment !!

[AREZZO]

ROI=net profit(i.e. total revenue-total costs-tax) divided by total investment. This is often corrected for inflation. For your example,neglecting taxes and other costs, the ROI is 150%. A very good investment !!

Thanks! I have it down now.

[akula]

Hello, I just have a few qestions on calulating ROI

If you are investing $1,000 and you profit $1,500 and made the $1,000 investment back. So you come up with $2,500. what would be your ROI?

Thank you
I am having touble understaing the formula. Thanks

Return calculations need to be expressed on a per annum basis, otherwise they cease to be useful, because you can't compare them to the risk free rate of return. Therefore to calculate the return, I need to know the date for when the investment was bought, and the date at which it was sold for a profit