Math Problem Statement

a real estate developer is looming for investors to help fund a new confo complex he promises a 145% return on investment in 4 years. if youre interested In in investing $30,000 and the developer follows through on his promise, how much will you get back in 4 years?

Solution

To calculate how much you will get back in 4 years, given a promised return of 145%, we can use the following steps:

Step-by-step solution:

  1. Initial investment: $30,000
  2. Return on investment (ROI): 145% over 4 years

To find out how much you will receive, you can use this formula:

Total Return=Initial Investment×(1+ROI100)\text{Total Return} = \text{Initial Investment} \times \left(1 + \frac{\text{ROI}}{100}\right)

Substitute the values:

Total Return=30,000×(1+145100)=30,000×2.45=73,500\text{Total Return} = 30,000 \times \left(1 + \frac{145}{100}\right) = 30,000 \times 2.45 = 73,500

Answer:

You will receive $73,500 after 4 years.

Would you like more details or have any further questions?

Here are some related questions:

  1. How is ROI typically calculated in real estate investments?
  2. What factors can affect whether a developer meets the promised ROI?
  3. What are some risks involved in real estate investment projects like this?
  4. How does compound interest compare to simple ROI in investment calculations?
  5. What are some ways to diversify investments beyond real estate?

Tip: Always research a developer's track record before investing, as promised returns can sometimes be overly optimistic or unreliable.

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Math Problem Analysis

Mathematical Concepts

Return on Investment (ROI)
Percentage
Basic Arithmetic

Formulas

Total Return = Initial Investment * (1 + ROI/100)

Theorems

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Suitable Grade Level

Grades 9-12