An investor has accumulated $6,650 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 $9,650.

Required:

Calculate the amount of return the investor would earn if the $6,650 were invested for one year at 7%.

Calculate the net amount of return the investor would earn if $3,000 were borrowed at a cost of 17%, and then $9,650 were invested for one year at 9%.

Calculate the net rate of return on the investment of $6,650 if the investor accepts the strategy of part b.

Note: Round your answer to 2 decimal places.

A. Amount of Return =

B. Net Amount of Return =

C. Net Rate of Return = %