Question

If you buy something for $1,000, receive $10 in income, and sell it for $1,100 a year later, how much

have you made?
O 0.11 percent
O 10 percent
O 0.10 percent
O 11 percent

Answer 1

To calculate profit, subtract the purchase price from the selling price and add any additional income. Then, use the profit and the initial investment to compute the percentage change, resulting in an 11 percent increase.

Step-by-step explanation:

If you buy something for $1,000, receive $10 in income, and then sell it for $1,100 a year later, the amount you have made is the total selling price minus your initial purchase price, plus any additional income.

This can be calculated as follows: $1,100 (selling price) - $1,000 (purchase price) + $10 (additional income) = $110 (total profit).

The next step is to calculate the percentage increase based on your original investment.

The formula for calculating percentage change (or growth rate) is the profit divided by the initial investment multiplied by 100 to convert it to a percentage.

Using this formula, the calculation would be $110/$1,000 = 0.11, which when multiplied by 100 gives us an 11 percent increase.