What is the ROI on an empty lot purchased for $10,000 that is taxed at a rate of $100/year for five years and then sold for $25,000?

Question

Quizplus · Accepted Answer

The ROI is calculated as (Net Profit / Cost of Investment) * 100. The net profit is $25,000 (sale price) - $10,000 (purchase price) - $500 (taxes over 5 years) = $14,500. The cost of investment is $10,000. Thus, ROI = ($14,500 / $10,000) * 100 = 145%, which means a 58% return on investment.

What Is the ROI on an Empty Lot Purchased for $10,000