Sprdsht 13:

Rate of returnPersonal Finance Problem

Rishi Singh has $3,700 to invest. His investment counselor suggests an investment that pays no stated interest but will return $4,400

at the end of 9 years.

(round to 2 decimal places)

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 of0.06%

. Which investment should he make, and why?