What is the formula to calculate percentage profit?

The formula to calculate percentage profit is derived from the relationship between the cost of an investment and the returns generated by that investment. The correct formula is the difference between the money made and the money paid, divided by the money paid, which can be expressed as:

(money made - money paid) / money paid.

This formulation allows you to assess how much profit you have made relative to your initial investment, providing a clear view of profitability in percentage terms.

The chosen option does not capture this relationship correctly. Understanding this formula is crucial for anyone involved in sales or investment, as it enables them to evaluate the effectiveness of their financial decisions in a tangible way.