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. . Mar 22, 2020 · solving for x gives us an annualized roi of 6.2659%. this is less than investment b’s annual return of 10%. to check if the annualized return is correct, assume the initial cost of an investment is $20. after 3 years, $20 x 1.062659 x 1.062659 x 1.062659 = $24. roi = (24 – 20) (20) = 0.2 = 20%. common mistakes in calculating roi.
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