18. Ray Seo has $5,000 to invest in a small business venture. His partner has promised to pay him back $8,200 in five years. What is the return earned on this investment?
To calculate the return earned on this investment, you will need to consider the initial investment amount and the final amount received. The formula to determine the return is as follows:
Return on Investment = (Final Amount - Initial Investment) / Initial Investment * 100
In this case, the initial investment is $5,000, and the final amount is $8,200. Plugging these values into the formula, you can calculate the return on investment as follows:
Return on Investment = ($8,200 - $5,000) / $5,000 * 100
Simplifying the equation:
Return on Investment = $3,200 / $5,000 * 100
Dividing:
Return on Investment = 0.64 * 100
The return on the investment is 64%.