Answer:
The return of investment for the investor if Saeed's business makes $7000 in profit in its first year is $6190.
Explanation:
Saeed agrees to repay the investor the $5000 plus 17 percent of the profits of the business. This can be represented by this equation.
Return of investment for the investor= initial investment+ (percentage of profits X profit)
When we fill in our known numbers, this is the equation. Remember, the profit for the first year was $7000.
Return of investment for the investor = 5000 + (.17 X 7000)
Return of investment for the investor = 5000 + 1190
Return of investment for the investor = $6190
The return of funding for the investor if Saeed's enterprise makes $7000 in income in its first year is $6190.
Saeed is of the same opinion that paying off the investor the $5000 plus 17 percent of the income of the enterprise is the best decision. This may be represented with the aid of this equation.
Return on investment for the investor = initial funding + (percentage of income X income)When we fill in our recognized numbers, that is the equation.
Remember, the income for the primary year was $7000. The investor's return on investment equals 5000 + (.17 X 7000).
The investor's return on investment is equal to 5000 + 1190.The investor's return on investment is $6190.
Therefore, from the above equation the total amount which investor gets is 6190$.
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