Annual rate of return will rishi earn with this investment

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Rishi Singh has $1,900 to invest. His investment counselor suggests an investment that pays no stated interest but will return $2,500 at the end of 10 years.

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 of 0.78 %

c. Which investment should he make and why?

Reference no: EM131834903

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