A company that made $2.4 million in profits the previous year is on pace to make $3 million in the current year. If the company makes this figure, which of the following is the percent increase in profits?
A. 6%
B. 11%
C.20%
D.25%
I'm stuck between c & D
100(0.6 / 2.4) = ______%
To calculate the percent increase in profits, you need to find the difference between the current year's profits and the previous year's profits, and then divide that difference by the previous year's profits. Finally, multiply the result by 100 to get the percentage.
In this case, the previous year's profits were $2.4 million, and the current year's projected profits are $3 million. To find the difference, subtract the previous year's profits from the current year's profits: $3 million - $2.4 million = $0.6 million.
Next, divide the difference ($0.6 million) by the previous year's profits ($2.4 million): $0.6 million / $2.4 million = 0.25.
To convert the result to a percentage, multiply by 100: 0.25 * 100 = 25%.
Therefore, the percent increase in profits is 25%.
So, the correct answer is D.