From 2010 to 2015, the Average Annual Profit for Acme

question 17

Multiple Choice

From 2010 to 2015, the average annual profit for Acme Floormat Company has increased from $1.5 million to $10 million.

• A) This is an increase of 8.5 percent
• B) This is an increase of 85 percent.
• C) This is an increase of 850 percent.
• D) This is an increase of 56.7 percent.
• E) This is an increase of 567 percent.

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Definitions:

Investment

The action of designating capital with the intention of securing an income or a financial return.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Economic Profit

The distinction between total sales and the aggregate of both explicit and implicit expenses for a firm.