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Question
Which among these is a better investment:
12.5% at 125 or 7.5% at 80
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Solution
12.5 % at 125 :
Income on Rs 125 =Rs 12.5
Income on Rs 1 = `12.5/125 = 0.1`
7.5 % at 80 :
Income on Rs 80 = Rs 7 .5
Income on Rs 1 = `7.5/80` = 0.093
Therefore, 12.5 % at 125 is a better investment.
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