I have a problem where I need to calculate a price that provides a 20% profit on an $825,000 initial investment. My teacher insists that I have to multiply the initial investment by 1.25 to find the cost, but I say you need to multiply by 1.20 because if you multiply by 1.25 it will give you a cost that provides a 25% profit. Am I right or is he? If you can, please provide an explanation. Thanks