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Rishi Singht has $1500 to invest. His investment counselor suggests an investment that pays no stated interest but will return $200 at the end of

Rishi Singht has $1500 to invest. His investment counselor suggests an investment that pays no stated interest but will return $200 at the end of 3 years.

a. What 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 8%. Which investment should he make, and why??

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