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Rate of return Personal Finance Problem Rishi Singh has $3,300 to invest. His investment counselor suggests that Rishi should buy an investment that pays no

Rate of return Personal Finance Problem

Rishi Singh has $3,300 to invest. His investment counselor suggests that Rishi should buy an investment that pays no interest but will be worth $4,100 after 4 years.

a. What average annual rate of return will Rishi earn with this investment?

b. Rishi is considering another investment, of equal risk, that earns an annual return of 3.58%

Which investment should he make, and why?

a. The annual rate of return Rishi will earn with this investment, r, is ?%. (Round to two decimal places.)

b. ?

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