Yani has $12,000 for investment purposes. His bank has offered the following three choices:

1. A special savings certificate that will pay $100 each month for 5 years and a lump sum payment at the end of 5 years of $13,000 2. Buy a share of a racehorse for $12,000 that will be worth $20,000 in 5 years 3. Put the money in a savings account that will have an interest rate of 12 percent per year compounded monthly

What is the internal rate of return used to make your decision?

1) Certificate: $

2) Racehorse: $

3) Savings Account: $