Net Income Was $418,600 in 2014 and $364,000 in 2013

question 88

Multiple Choice

Net income was $418,600 in 2014 and $364,000 in 2013.The year-to-year percentage change in net income is closest to:

• A)15%.
• B)55%.
• C)87%.
• D)13%.

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Definitions:

Average Rate Of Return

A measure of the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Riskiness

The measure of uncertainty or potential for loss in an investment or economic activity.

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically governmental or corporate entities, with agreed terms for interest payments and the return of principal.

Nominal Rate Of Return

The nominal rate of return is the percentage increase or growth in an investment's value without adjusting for inflation or other external factors.