Given the assets $R s .10, 00, 000$ ,
Taxes $R s .12, 500$ ,
Profit before tax $R s .1, 12, 500$ ,
Net worth $R s .5, 00, 000$ ,
What is Ratio of Profit or ROI?

10 %

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12.5 %

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20 %

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25 %

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Solution

The correct option is C $20 %$
ROI (Return On Investment) = [Net Profit After Tax / Net Worth] x $100$
= $[(112500 - 12500) / 500000]$ x $100$
= $20 %$

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Given the assets Rs.10,00,000,Taxes Rs.12,500,Profit before tax Rs.1,12,500,Net worth Rs.5,00,000,What is Ratio of Profit or ROI?

The correct option is C 20%ROI (Return On Investment) = [Net Profit After Tax / Net Worth] x 100 = [(112500−12500)/500000] x 100 = 20%

Given the assets $R s .10, 00, 000$ ,
Taxes $R s .12, 500$ ,
Profit before tax $R s .1, 12, 500$ ,
Net worth $R s .5, 00, 000$ ,
What is Ratio of Profit or ROI?

The correct option is C $20 %$
ROI (Return On Investment) = [Net Profit After Tax / Net Worth] x $100$
= $[(112500 - 12500) / 500000]$ x $100$
= $20 %$