3. To find which is the more profitable investment.

RULE.--_Find the rate per cent that each investment yields, by rule,

under item 2; then compare rates._

EXAMPLE: Which is the better investment; 6% mortgages at 10% premium, or

5% bonds at 10% discount?

(1) 110)600(5-5/11%.

(2) 90)500(5-5/9%. 5/9 - 5/11 = 10/99, practically 1/10.

_Ans._ The latter, by 1/10 of 1%, nearly.

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