Question

jack invested $500 in the shares of a company x and $750 in the shares of a company y. after a year, he sold all the shares of both companies for $600 and $900 respectively. what is the ratio of return on investment from company x to that from company y?

Answer 1

The ratio of return on investment from company x to that from company y is 2:3

Given the amount invested in company x and y:

• Company x invest $500

• Company y invest $750

After a year, both companies sold their shares as follows:

• Company x sold his shares for $600

• Company y sold his shares for $900

Return on investment x = $600 - $500 = $100

Return on investment y = $900 - $750 = $150

Get the ratio of return on investment from company x to that from the company;

$Ratio = \frac{company \ x}{company \ y}\\Ratio= \frac{100}{150}\\Ratio = \frac{2}{3}$

Hence the ratio of return on investment from company x to that from company y is 2:3

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