Four people each invest $1000, with each person garnering a different rate of return.

a) The first three people invest $1000 each for one year in three different investments. The first person gets a return of 16% and the other two get 1% and 27%, respectively. What is the average return on the three investments?

b) The fourth investor invests $1000 for three years. At the end of each year he reinvests his return plus capital for the next year. He makes 16%, 1%, and 27% in the three years, respectively. What is his average rate of return over the three years?