CUET Preparation Today
| A grocery owner has an equity stake of Rs 40,000/- in the business. He has borrowed Rs 60,000/-. Profit before interest on loan is Rs 20,000. Loan on interest comes to Rs 6,000/- @ of 10% per annum. The net profit of the firm is Rs 14,000. Calculate the Return on Investment. |
10% 20% 30% 35% |
| 20% |
| ROI= ROI = Net Profit x 100/Total Capital Invested Total Capital Invested= Equity + Loans=40,000+60,000 ROI=20,000*100/100000=20% |
