SOLUTION: Hi, Can I please get some help im solving for the ROI, it's just basic algebra i don't really get: .2606 = ROI + (ROI-0.0405)(1/3) I know the answer is ROI = 20%, just don'

Algebra ->  Finance -> SOLUTION: Hi, Can I please get some help im solving for the ROI, it's just basic algebra i don't really get: .2606 = ROI + (ROI-0.0405)(1/3) I know the answer is ROI = 20%, just don'      Log On


   

Question 669339: Hi, Can I please get some help im solving for the ROI, it's just basic algebra i don't really get:
.2606 = ROI + (ROI-0.0405)(1/3)

I know the answer is ROI = 20%, just don't understand the steps.
Answer by MathTherapy(10552) About Me  (Show Source):
You can put this solution on YOUR website!
Hi, Can I please get some help im solving for the ROI, it's just basic algebra i don't really get:
.2606 = ROI + (ROI-0.0405)(1/3)

I know the answer is ROI = 20%, just don't understand the steps.

.2606+=+ROI+%2B+%28ROI+-+0.0405%29%281%2F3%29

.2606+=+ROI+%2B+%28ROI+-+0.0405%29%2F3

.7818 = 3ROI + ROI – 0.0405 ------- Multiplying by LCD, 3

.7818 + 0.0405 = 3ROI + ROI

.8223 = 4ROI

ROI = .8223%2F4, or highlight_green%28.205575%29 ≈ 20.56%, or 20.6%, or 21%, depending on where you need to round it off.

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