Question

stock in ombor medical supplies earns a return of 5.3% annually, while bonds issued by ombor medical supplies earns a return of 4.1% annually. if you invest a total of $2,400 in ombor medical supplies, $1,400 of which is in bonds and $1,000 of which is in stocks, which side of the investment will show a greater return after six years, and how much greater will it be?

Answer 1

Bonds will generate $26.40 more income than equities do.

How is the stock return determined?

An investment's return on investment (ROI) provides a general indication of its profitability. In order to calculate ROI, subtract the investment's initial cost from its final value, divide the result by the cost of the investment, and then multiply the result by 100.

assuming that the rates remain constant for six years.

If you invest a total of $2,400 in ombor medical dollars, you will receive an annual return of 4.1% on bonds issued by ombor medical supplies and a 5.3% annual return on stock in ombor medical supplies.

The sum will equal $ in six years.

Bonds have a higher yield than equities, as is evident.

Therefore, the difference is $.

Bonds will therefore earn $26.40 more than equities over the long term.

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