Megan used to work at the local pizzeria for $15,000 per year but quit to start her own deli. To buy the necessary equipment, she withdrew $20,000 from her inheritance (which paid 8 percent interest). Last year she paid $25,000 for ingredients and $500 per month rent but had revenue of $50,000. She asked her dad the accountant and her mom the economist to calculate her annual profit for her.
A. Dad says her profit is $19,000 and Mom says her profit is $2,400.
B. Dad says her profit is $31,000 and Mom says her profit is $16,600.
C. Dad says she lost $11,000 and Mom says she lost $26,000.
D. Dad says her profit is $9,000 and Mom says she lost $6,000.
Answer: A
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