What is typically used to express the potential earnings from investments in a simpler form?

The concept of expressing potential earnings from investments in a simpler form is best done using a percentage. Percentages provide a standard way of comparing returns on different investments regardless of their nominal values. By converting potential earnings into a percentage, investors can more easily gauge and compare the relative performance of their investments against one another or against a benchmark.

Using percentages allows for clearer communication of growth rates or returns, making it accessible for individuals to understand the effectiveness of their investment without delving into complex figures. For example, saying an investment yields a 5% return is straightforward and allows for an immediate grasp of performance compared to other investment options that may yield 3% or 10%. Thus, using percentages simplifies the evaluation and decision-making processes in investment contexts.