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An investor has accumulated $ 7 , 7 5 0 and is looking for the best rate of return that can be earned over the
An investor has accumulated $ and is looking for the best rate of return that can be earned over the next year. A bank savings account will pay A oneyear bank certificate of deposit will pay but the minimum investment is $
Required:
a Calculate the amount of return the investor would earn if the $ were invested for one year at
b Calculate the net amount of return the investor would earn if $ were borrowed at a cost of and then $ were invested for one year at
c Calculate the net rate of return on the investment of $ if the investor accepts the strategy of part Note: Round your answer to decimal places.
tablea Amount of return,,b Net amount of return,,c Net rate of return,,
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