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Please answer the problem below: You have accumulated $5,050 and are looking for the best rate of return that can be earned over the next
Please answer the problem below:
You have accumulated $5,050 and are 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 $8.050. Required: a. Calculate the amount of return you would earn if the $5,050 were invested for one year at 8%. b. Calculate the net amount of return you would earn if $3,000 were borrowed at a cost of 18%, and then $8,050 were invested for one year at 10%. c. Calculate the net rate of return on your investment of $5.050 if you accept the strategy of part b. (Round your answer to 2 decimal places.) 3. Amount of return D. Net amount of return C. Net rate of return %
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