select the correct answer.\na company made a profit of $75,000 over a period of 6 years on an initial…

select the correct answer.\na 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?\n\na. 26%\nb. 66.67%\nc. 83.33%

select the correct answer.\na 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?\n\na. 26%\nb. 66.67%\nc. 83.33%

Answer

Explanation:

Step1: Calculate total ROI

ROI = $\frac{\text{Profit}}{\text{Initial Investment}}\times100%$. Here, profit = $75000$ and initial investment = $15000$. So, ROI = $\frac{75000}{15000}\times100%= 500%$.

Step2: Calculate annualized ROI

Annualized ROI = $\frac{\text{Total ROI}}{\text{Number of years}}$. Number of years = 6. So, annualized ROI = $\frac{500%}{6}\approx83.33%$.

Answer:

C. 83.33%