Final answer:
The growth rate of profits can be calculated using the formula: (Ending Profits / Beginning Profits) - 1. This formula represents the percentage change in profits over a period of time.
Step-by-step explanation:
The growth rate of profits can be calculated using the formula: (Ending Profits / Beginning Profits) - 1. This formula represents the percentage change in profits over a period of time. To find the growth rate, subtract 1 from the ratio of ending profits to beginning profits and express it as a decimal or percentage. For example, if the ending profit is $100,000 and the beginning profit is $80,000, the growth rate would be (100,000 / 80,000) - 1 = 0.25 or 25%.