An investment producing cash flows in the amount of $$1,410$ per month is undertaken for a period of $28$

months. The investor pays $$27,600$ for the investment and the contract stipulates that investment returns

must be reported on a basis equivalent with annual compounding.

Required:

a$.$ Given that the investment is sold after $28$ months, what would be the equivalent annual compound rate

of interest reported to the investor?

b$.$ What would be the annual rate compounded monthly for this investment?

Note: For all requirements, do not round intermediate calculations and round your answers to $2$

decimal places.