1)You bought 5,000 of gold last year by borrowing 3,000 at an annual rate of interest of 3.5% and using 2,000 of your own money. You have just found out that the gold you bought a year ago is now worth 5,250. Which one of the following statements is correct?

a)The return on your equity is 2.9%, but the return on the capital employed is 7.25%.

b)The return on your equity is 7.25%, but the return on the capital employed is 5%.

c)The return on your equity is 5%, but the return on the capital employed is 12.5%.

d)The return on your equity is 12.5%, but the return on the capital employed is 5%.

e)None of the above.