Final answer:
The formula for determining net profit is: Net profit = Value of investment - Cost of investment.
Step-by-step explanation:
The formula for determining net profit is:
Net profit = Value of investment - Cost of investment
This formula calculates the difference between the value of the investment and the cost of the investment. Net profit represents the amount of money earned after deducting the expenses or costs involved in acquiring and maintaining the investment. For example, if the value of the investment is $100 and the cost of the investment is $80, the net profit would be $20 ($100 - $80).
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