Problem $9$

Cindy Moore has $$5,000$ to invest. Because she is only $30$ years old, she is not concerned about the length of the investment's life. What she

is sensitive to is the rate of return she will earn on the investment. With the help of her financial advisor, Cindy has isolated four equally risky

investments, each providing a single cash flow at the end of its life, as shown in the following table. All the investments require an initial

$$5,000$ payment.

a$.$ Calculate, to the nearest $1\%,$ the average annual rate of return on each of the four investments available to Cindy.

b$.$ Which investment would you recommend to Cindy, given her goal of maximizing the rate of return?

Answers $($insert your answers in the highlighted cells; use cell references, equations, and functions wherever possible$)$

a$.$

b$.$