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6) RATE OF RETURN. You have $5,000 excess cash to invest after you fully funded your emergency fund. You can choose to use the cash

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6) RATE OF RETURN. You have $5,000 excess cash to invest after you fully funded your emergency fund. You can choose to use the cash on a T-bill that can be purchased for $4,500 (maturing to value at $7,000 after one year) or you can buy two CDs for $2500 each (that can be purchased with a guaranteed 4.5% return after 12 months). Which will give a better return (in percentages)? Show work. 7) You purchase a $25,000 T-bill for $18,500. A few months later you sold the T bill for $20,700. What was the return on the T-bill? Show work

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