Wednesday, August 4, 2010

Fun with math! Investment Returns!

Say I give you $100,000 and you have a choice to invest it 2 ways, The first way earns you 25% a year for 4 years and then during year 5 the market tanks and you lose 50%. Or an account that earns 6% every year for 5 years.

Which would you choose?


The answer might surprise you.

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