Ushtrime Te Zgjidhura Investime ✦ Reliable

Where: PV = present value FV = future value = $1,000 r = discount rate = 10% = 0.10 n = number of years = 5

ROI = (Total Cash Flows - Initial Investment) / Initial Investment Ushtrime Te Zgjidhura Investime

Using the future value formula:

If the initial investment is $300, what is the return on investment (ROI)? Where: PV = present value FV = future

Year 1: $100 Year 2: $120 Year 3: $150