If you want to compare two different investments, what should you calculate?

a.
the compound interest
b.
the roi percentages
c.
the roi dollar amounts
d.
the capital gain

The answer is B: The ROI percentages.

Investing is like a game of cards or much like tossing darts while blindfolded. You might get lucky or completely miss the target. If you are stuck and would want to compare two investments you have in mind, Return on Investment (ROI) is the way to go. ROI evaluates the efficiency and compare a number of investments. To calculate Return on Investment, the benefits of an investment is divided by the cost of the investment. The result should be expressed as percentage.

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