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You have accumulated $8,000 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 $10,000. Required (a)Calculate the amount of return you would earn if the $8,000 were invested for one year at 6%. (Omit the "$" sign in your response.) Amount of return $ (b)Calculate the net amount of return you would earn if $2,000 were borrowed at a cost of 15%, and then $10,000 were invested for one year at 8%. (Omit the "$" sign in your response.) Net amount of return $ (c) Calculate the net rate of return on your investment of $8,000 if you accept the strategy of part b. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
What would you expect to be the total cost of providing room service in a month in which room service revenue amounts to $15,000? (Omit the "tiny_mce_markerquot; sign in your response.)
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