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ctice i as You have accumulated $6,300 and are looking for the best rate of return that can be earned over the next year. A bank savings account will pay 10%. A one-year bank certificate of deposit will pay 12%, but the minimum investment is $9,300. Required: a. Calculate the amount of return you would earn if the $6,300 were invested for one year at 10%. b. Calculate the net amount of return you would earn if $3,000 were borrowed at a cost of 20%, and then $9,300 were invested for one year at 12% Saved c. Calculate the net rate of return on your investment of $6,300 if you accept the strategy of part b. (Round your answer to 2 decimal places.) a b. C Amount of return Net amount of retum Net rate of retum Help ctice i as You have accumulated $6,300 and are looking for the best rate of return that can be earned over the next year. A bank savings account will pay 10%. A one-year bank certificate of deposit will pay 12%, but the minimum investment is $9,300. Required: a. Calculate the amount of return you would earn if the $6,300 were invested for one year at 10%. b. Calculate the net amount of return you would earn if $3,000 were borrowed at a cost of 20%, and then $9,300 were invested for one year at 12% Saved c. Calculate the net rate of return on your investment of $6,300 if you accept the strategy of part b. (Round your answer to 2 decimal places.) a b. C Amount of return Net amount of retum Net rate of retum Help
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a Calculate the amount of return you would earn if the 6300 w... View the full answer
Related Book For
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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