Amalgamated Corporation's Net Income Was $2,400,000 in 2017 and $800,000

question 26

Multiple Choice

Amalgamated Corporation's net income was $2,400,000 in 2017 and $800,000 in 2018.What percentage increase in net income must Amalgamated achieve in 2019 to offset the decline in profits in 2018?

• A)75%
• B)300%
• C)33.33%
• D)800%

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Definitions:

Investment Account

An account held at a financial institution that is used for investing in securities, such as stocks, bonds, and mutual funds.

Withdraw

The process of withdrawing money from a bank account or investment.

Compounded Monthly

It's the practice of assessing interest each month, by adding up both the initial amount invested or borrowed and the subsequent interest that's accumulated over time.

GIC's Maturity

The fixed date when a Guaranteed Investment Certificate (GIC) expires and the principal amount is returned to the investor along with the accrued earnings.