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Investment with higher return

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You are trying to choose between two different investments, both of which have up-front costs of $65,000. Investment M returns $135,000 in six years. Investment N returns $195,000 in 10 years. Which of these investments has a higher return?

use formulas (not excel)

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Solution Summary

This solution explains how to determine the investment with the higher return.

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We use the compound interest formula to calculate the returns
FV = PV ...

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