Dennis Spends $400 on a Snowblower,expecting to Earn $80 Per

question 54

Multiple Choice

Dennis spends $400 on a snowblower,expecting to earn $80 per year for each of the next five years clearing out his neighbors' driveways.The rate of return he expects on this investment is

• A)500 percent per year
• B)100 percent per year
• C)80 percent per year
• D)25 percent per year
• E)20 percent per year

---

Definitions:

Code and Restatement

Legal documents that systematically collect statutes, codes, or common law principles, simplifying and clarifying the law.

Donee Beneficiaries

Individuals or entities that receive benefits from a contract, though they are not one of the primary parties involved in the agreement.

Creditor Beneficiaries

Third parties that benefit from a contract between two other parties because one party promises to pay a debt owed to the beneficiary.

Incidental Beneficiaries

Individuals or entities that unexpectedly benefit from a contract, despite not being directly involved in its formulations.