Effective rate of return on investment

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Reference no: EM1351712

Investment 1:

Nominal Rate of 9% compounded daily on 365 day year.

Investment 2:

CD that offers $9,000 after 27 months. $7,000 required investment.

If you go with investment #2 by how much will the effective rate of return increase.

** I am able to figure out the EFF of Investment #1 but am having difficulty finding the Effective rate of return on Investment #2.

Reference no: EM1351712

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