My question is: Emma and Briana invested some capital into a business. Emma's investment is supposed to yield 15% of the capital annually while Briana's should yield 10% annually. If Emma invested $300 and Briana invested $500, what will be the difference between their return-on-investment after 2 years? Your thoughts:
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15% of $300 is (15 / 100) * $300 = $45. Emma will earn an annual ROI of $45 for 2 years for a total of $45 * 2 = $90. 10% of $500 is (10 / 100) * $500 = $50. Briana will earn an annual ROI of $50 for 2 years for a total of $50 * 2 = $100. The difference between their ROI after 2 years is $100 - $90 = $10. The final answer: 10.
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