You have accumulated $4,100 and are looking for the best rate of return that can be earned over the next year. A bank savings account will pay 6%. A one-year bank certificate of deposit will pay 8%, but the minimum investment is $7,100.

a. Calculate the amount of return you would earn if the $4,100 were invested for one year at 6%.

b. Calculate the net amount of return you would earn if $3,000 were borrowed at a cost of 16%, and then $7,100 were invested for one year at 8%. (Round intermediate calculations.)

c. Calculate the net rate of return on your investment of $4,100 if you accept the strategy of part b. (Round intermediate calculations. Round your answer to 2 decimal places.)