Example

Calculating Profit and Rate of Return from Marco's Grain Investment

From an initial investment of $100 in grain, Marco achieves a harvest of $150. This yields a profit of $50, which is the difference between the harvest and the initial investment ($150 - $100). The profit rate, or rate of return, is calculated by dividing the profit by the investment amount, resulting in 50% ($50 / $100).

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Updated 2025-08-28

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