Question 12 Marks
Which among these is a better investment:
12.5% at 125 or 7.5% at 80
12.5% at 125 or 7.5% at 80
Answer
View full question & answer→$12.5 \%$ at 125 :
Income on Rs $125=$ Rs 12.5
Income on Rs $1=\frac{12.5}{125}=0.1$
$7.5 \%$ at 80 :
Income on Rs $80=$ Rs 7.5
Income on Rs $1=\frac{7.5}{80}=0.093$
Therefore, $12.5 \%$ at 125 is a better investment.
Income on Rs $125=$ Rs 12.5
Income on Rs $1=\frac{12.5}{125}=0.1$
$7.5 \%$ at 80 :
Income on Rs $80=$ Rs 7.5
Income on Rs $1=\frac{7.5}{80}=0.093$
Therefore, $12.5 \%$ at 125 is a better investment.