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Two acquaintances have approached you about investing in business activities in which each is involved. Velterine...

Two acquaintances have approached you about investing in business activities in which each is involved. Velterine is seeking $500 and Francis needs $575. One year from now your original investment will be returned, along with $45 income from Velterine or $48 income from Francis. You can make only one investment.

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--That investment will be prepared which will provide more 'rate of interest income'.
--Investment in Velterine will earn a income of $ 45 on $ 500
--Investment in Francis will earn a income of $ 48 on $ 575

Working Velterine Francis
A Income to be received $                        45 $                       48
B Investment $                      500 $                     575
C = (A/B) x 100 Rate of Interest earned 9.00% 8.35%

ANSWER: Velterine provide rate of interest income of 9% (more than Francis), hence amount should be given or invested in Velterine.

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