Question

A company made a profit of $75,000 over a period of 6 years on an initial investment of $15,000. What is its annualized ROI? 26% 66.67% 83.33%

Answer 1

Annual ROI is approximately 83.3%

Find annual profit: $75,000/6 = $12,500

ROI = Annual Profit/ initial investment
ROI = $12,500/$15,000 or 83.3%

Answer 2

ROI = $12,500/$15,000 or 83.3%