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Use the following data: Investment Assets at Year End $170,000 Investment Assets at Beginning of Year $125,000 Savings $25,000 Employer Match to 401(k) $4,800 Gross Income $120,000 Total Assets at Year End $650,000 Total Assets at Beginning of Year $610,000 Total Liabilities at Year End $235,000 Total Liabilities at Beginning of Year $240,000 What was the return on net worth for the year

Respuesta :

Answer: 12.16%

Explanation:

Return on investment is used to know how efficient and investment is. Based on the information given in the question, the ROI will be:

ROI = [ending value of investments - (the beginning investment value + savings)]/ the beginning investment value

= $170,000 - ($125,000 + $25000 + $4800)/$125,000

= $170,000 - $154800/$125,000

= $15,200/$125,000

= 0.1216

= 12.16%

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