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An investor has accumulated $ 5 , 4 5 0 and is looking for the best rate of return that can be earned over the

An investor has accumulated $5,450 and is looking for the best rate of return that can be earned over the next year. A bank savings account will pay 7%. A one-year bank certificate of deposit will pay 9%, but the minimum investment is $8,450.
Required:
a. Calculate the amount of return the investor would earn if the $5,450 were invested for one year at 7%.
b. Calculate the net amount of return the investor would earn if $3,000 were borrowed at a cost of 17%, and then $8,450 were invested for one year at 9%.
c. Calculate the net rate of return on the investment of $5,450 if the investor accepts the strategy of part b.
Note: Round your answer to 2 decimal places.
\table[[a. Amount of return,$,382,],[b. Net amount of return,,,],[c. Net rate of return,,,%
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