Using ROI defined as gain divided by cost, if the cost is 2,000 and the gain is 400, what is ROI?

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Multiple Choice

Using ROI defined as gain divided by cost, if the cost is 2,000 and the gain is 400, what is ROI?

Explanation:
ROI shows how much gain you get for each dollar invested. Since ROI is gain divided by cost, plug in gain = 400 and cost = 2000: 400 / 2000 = 0.2. So the ROI is 0.20 (20% if you convert to a percentage). This matches the given data. The other values would require different gains (for example, 0.40 would need 800 gain, 2.00 would need 4000 gain, and 0.50 would need 1000 gain).

ROI shows how much gain you get for each dollar invested. Since ROI is gain divided by cost, plug in gain = 400 and cost = 2000: 400 / 2000 = 0.2. So the ROI is 0.20 (20% if you convert to a percentage). This matches the given data. The other values would require different gains (for example, 0.40 would need 800 gain, 2.00 would need 4000 gain, and 0.50 would need 1000 gain).

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