The return on investment (ROI) is given by:
[tex]_{\text{ }}ROI=\frac{Net_{\text{ }}return_{\text{ }}on_{\text{ }}investment}{_{\text{ }}Cost_{\text{ }}of_{\text{ }}_{\text{ }}investment}\text{ }_{}\times100[/tex]Where:
Net return on investment = $4900 - $4000 = $900
Cost of investment = $4000
Therefore:
[tex]_{\text{ }}ROI=\frac{900}{4000}\times100=22.5[/tex]Answer:
22.5%
