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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 $7,750 and is looking for the best rate of return that can be earned over the next year. A bank savings account will pay 8%. A one-year bank certificate of deposit will pay 10%, but the minimum investment is $10,750.
Required:
a. Calculate the amount of return the investor would earn if the $7,750 were invested for one year at 8%.
b. Calculate the net amount of return the investor would earn if $3,000 were borrowed at a cost of 18%, and then $10,750 were invested for one year at 10%.
c. Calculate the net rate of return on the investment of $7,750 if the investor accepts the strategy of part b. Note: Round your answer to 2 decimal places.
\table[[a. Amount of return,,],[b. Net amount of return,,],[c. Net rate of return,,%
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