question 10(1 point) suppose sarahs investment gained $200 and had a 25% roi. which of the following would…
question 10(1 point) suppose sarahs investment gained $200 and had a 25% roi. which of the following would be true if their roi was -25%? a they lost $200 b they lost $25. c they owe the bank $25 d they gained $175.
Answer
Explanation:
Step1: Find initial investment
Since ROI = $\frac{Gain}{Initial\ Investment}$, and when ROI = 25% and gain = $200, we can find initial investment. Let initial investment be $x$. Then $0.25=\frac{200}{x}$, so $x=\frac{200}{0.25}=800$.
Step2: Calculate loss when ROI = - 25%
When ROI=-25% and initial investment $x = 800$, the gain is $ROI\times x=-0.25\times800=-200$. A negative gain means a loss of $200$.
Answer:
A. They lost $200