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WARRIOR [948]
3 years ago
12

A Ponzi scheme involves using new investment dollars to trick current investors into thinking they are earning high returns. If

someone running a Ponzi scheme is bringing in new investors at a rate of 25% per year and stealing 10% of investments, what return could he pay investors? (Assume the money is never really invested.)
a) 15%
b) 20%
c) 25%
Business
1 answer:
spayn [35]3 years ago
4 0

Answer: a) 15%

Explanation:

If an investor is bring in someone new at 25% and is stealing 10% of the investment, the return he could pay investors is (25-10%) which is 15%.

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