An investor has accumulated $8,650 and is looking for the best rate of return that can be earned over the next year. A bank savings account will pay 6%. A one-year bank certificate of deposit will pay 8%, but the minimum investment is $11,650. Required: a. Calculate the amount of return the investor would earn if the $8,650 were invested for one year at 6%. b. Calculate the net amount of return the investor would earn if $3,000 were borrowed at a cost of 16%, and then $11,650 were invested for one year at 8%. c. Calculate the net rate of return on the investment of $8,650 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 %

An investor has accumulated $8,650 and is looking for the best rate of return that can be earned over the next year. A bank savings account will pay 6%. A one-year bank certificate of deposit will pay 8%, but the minimum investment is $11,650. Required: a. Calculate the amount of return the investor would earn if the $8,650 were invested for one year at 6%. b. Calculate the net amount of return the investor would earn if $3,000 were borrowed at a cost of 16%, and then $11,650 were invested for one year at 8% c. Calculate the net rate of tetum on the investment of $8,650 if the investor accepts the strategy of part b. Note: Round your answer to 2 decimal places