James used $200,000 from his savings account that paid an annual interest of 10% to purchase a hardware store.After one year,James sold the business for 300,000.His accountant calculated his profit to be:

Question

Quizplus · Accepted Answer

To calculate James' profit, we need to subtract the initial investment from the sale price:

Profit = Sale Price - Initial Investment

Initial Investment = $200,000

Sale Price = $300,000

Therefore, Profit = $300,000 - $200,000 = $100,000

So, the correct choice is B) $100,000.

James Used $200,000 from His Savings Account That Paid an Annual