A&B Appliances sells a washer-dryer combination for $1535 cash. C&D Appliances offers the same combination for $1595 with no payments and no interest for 6 months. Therefore, you can pay $1535 now or invest the $1535 for 6 months and then pay $1595. What value would the annual rate of return have to exceed for the second alternative to be to your advantage?

Answer (Needs work shown): 7.82%