Dana, a Recent Graduate with a Degree in Economics, Turned

Multiple Choice

Dana, a recent graduate with a degree in economics, turned down a job offer paying $50,000 a year and instead chose to become an entrepreneur. He borrowed $15,000 from a bank at a 10 percent interest rate and that was sufficient to pay for all his equipment, materials, and labor. Dana's accountant told him that the business generated a total revenue of $70,000 in the first year. How much of a return on his entrepreneurial abilitydid Dana earn?

A) $7,000
B) $20,000
C) $18,500
D) $50,000
E) $70,000