Investment A: A profit of $380$380 on a $3800$3800 investment.Investment B: A profit of $290$290 on a $3900$3900 investment.Step 3 of 3 : Which is the better investment (A or B)?
Question
Investment A: A profit of 380 on a 3800 investment.Investment B: A profit of 290 on a 3900 investment.Step 3 of 3 : Which is the better investment (A or B)?
Solution
To determine which investment is better, we need to calculate the return on investment (ROI) for both Investment A and B.
ROI is calculated using the formula:
ROI = (Profit / Investment) * 100%
For Investment A: ROI = (3800) * 100% = 10%
For Investment B: ROI = (3900) * 100% = 7.44%
Investment A has a higher return on investment (10%) compared to Investment B (7.44%). Therefore, Investment A is the better investment.
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