Rate of return and investment choice Clare Jaccard has 59.000 to invest. Because she is only 25 years old, she is not concerned about the length of the investment's life. What she is sensitive to is the rate of return she will cam on the investment with the help of her financial advisor, Clare has holated for equally risky investments, each providing a single amount at the end of its life as shown in the flowing table. Al of the investments require an in a $9.000 payment a. Calculate to the nearest 0.01%, the rate of retum on each of the four investments available to Clare b. Which investment would you recommend to Clare given her goal of maximizing the rate of return? a. The annual rate of rotum,r, on investment is % (Round to two decimal place) The annual tate of retum. r. on Investment B is 0% (Round to two decimal places) The annual rate of return, r, on lovestment Ca % Pound to two decimal places) The annual cate of return on investment (% Round to two decimal place) b. Which of the investments should Clare Jaccard choose to reach her goal of maximizing the rate of rotum? (Select the best answer below) O A Investment OB. Investment B OC. Investment OD. Investment D Investment A B C D Single amount Investment life (years) $13,800 6 $32,600 15 $14,500 4 $23,300 10 Rate of return and investment choice Clare Jaccard has 59,000 to invest Because she is only 25 years old, she is not concerned about the length of the investment's life. What she is sensitive to is the rate of retum she will ea on the investment with the help of her financial advisor, Clare has isolated four equally risky Investments, each providing a single amount at the end of its life, as shown in the following table. All of the investments require an initial 59.000 payment a. Calculate to the nearest 0.01%, the rate of retum on each of the four investments available to Clare b. Which investment would you recommend to Clare given her goal of maximizing the rate of return? The annual rate of retum.r.on Investment As I (Round to two decimal places) The annual rate of rotun, f, on Investment B is I (Round to two decimal places) The annual rate of retum, , on lovestments > (Round to two decimal places) The annual rate of return on investment DX (Round to two decimal place) b. Which of the investments should Clare Jaccard choose to reach her goal of maining the role of return? (Select the best answer below) O A Investment OB Investment OC Investment OD. Investment Investment A B Single amount Investment life (years) $13,800 6 $32,600 15 $14,500 4 $23,300 10
