Question

Luis repairs air conditioners. He earned a certificate in 6 months and paid for it with one loan. He earns a good salary now and will pay off his loan in two years. What kind of return on investment (roi) does luis demonstrate?

Answer 1

The kind of ROI Luis demonstrates is : Positive ROI

Positive ROI

A positive ROI is defined as when the cost of a financial decision/step is lower than the gain of a financial decision.

Luis takes a loan to help him earn a certificate,  the certificate he earns has helped him earn a good salary job which he can use to repay the loan.

Therefore in the long term Luis will have a positive return on investment on his financial decision.

Hence we can conclude that the kind of ROI Luis demonstrates is Positive ROI.

Learn more about ROI here : brainly.com/question/23603222