You're trying to choose between two different investment, both of which have up - front costs of $45,000. investment g returns $75,000 in six years. investment h returns $105,000 in 9 years. which of these investments has the higher return?

Question

Daisy Kirby

Business

11 February, 04:26

You're trying to choose between two different investment, both of which have up - front costs of $45,000. investment g returns $75,000 in six years. investment h returns $105,000 in 9 years. which of these investments has the higher return?

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Answers (1)

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Kiara Clarke · Answer 1

Amount invested in both schemes is $45,000

returns in investment g is 75,000 in 6 years.

yearly return is:

75000/6=12,500

returns in investment h is 105,000 in 9 years

yearly return is:

105,000/9

=11,666.67

from the above results we can conclude that investment g has the higher returns.