Question

The profit of a company in 2010 was $2.5 million and in 2012 was $4.5 million. Calculate the rate of change in profit.

Answer 1

80%

Explanation:

To calculate the rate of change in profit, we can use the formula:

Rate of change = ((Final profit - Initial profit) / Initial profit) * 100

In this case:

Initial profit = $2.5 million

Final profit = $4.5 million

Rate of change = (($4.5 million - $2.5 million) / $2.5 million) * 100

Rate of change = ($2 million / $2.5 million) * 100

Rate of change = 0.8 * 100

Rate of change = 80%

Therefore, the rate of change in profit is 80%.