The rate of return on investment (ROI) is found by subtracting the amount of an original investment from its value at the end of a period of time, dividing this amount by the value of the original investment, and then multiplying by 100. The answer is expressed as a percent of the original investment. This formula appears as [(A - B) / B] x 100 = ROI where: A = the value of the investment at the end of a period of time B = the value of the original investment Directions: Use this formula to calculate the ROI in each of the examples above. 1. A neighbor offers to pay you $600 to borrow your $500 for one year. ROI = 2. A corporation pays $3 per share in annual dividends for each of the ten shares you purchase for $50 each. ROI = 3. A bank offers $10 in interest for your one-year deposit of $500. ROI = 4.What ROI would you demand if you loaned money to one of your friends? Explain. The rate of return on investment (ROI) is found by subtracting the amount of an original investment from its value at the end of a period of time, dividing this amount by the value of the original investment, and then multiplying by 100. The answer is expressed as a percent of the original investment. This formula appears as [(A - B) / B] x 100 = ROI where: A = the value of the investment at the end of a period of time B = the value of the original investment Directions: Use this formula to calculate the ROI in each of the examples above. 1. A neighbor offers to pay you $600 to borrow your $500 for one year. ROI = 2. A corporation pays $3 per share in annual dividends for each of the ten shares you purchase for $50 each. ROI = 3. A bank offers $10 in interest for your one-year deposit of $500. ROI = 4.What ROI would you demand if you loaned money to one of your friends? Explain