The Texas Corporation is considering the following opportunities to purchase an investment at the following amounts and discounts: Which opportunity offers the Texas Corporation the highest annual yield? A. 90-day investment.
B. 180-day investment.
C. 270-day investment.
D. 360-day investment.
Answer (A) is correct because The annual yield on the 180-day investment is only 20%..
Answer (B) is incorrect because The annual yield on the 180-day investment is only 12%.
Answer (C) is incorrect because The annual yield on the 270-day investment is only 6.7%.
Answer (D) is incorrect because The annual yield on the 360-day investment is only 10%.