A friend has 4800 that has been saved from her part-time

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A friend has $4,800 that has been saved from her part-time job. She will need her money, plus any interest earned on it, in six months and has asked for your help in deciding whether to put the money in a bank savings account at 5.5% interest or to lend it to Judy. Judy has promised to repay $5,100 after six months.

Required:

(a) Calculate the interest earned on the savings account for six months. (Omit the "$" sign in your response.) Interest earned $

(b) Calculate the rate of return if the money is lent to Judy. (Round your percentage answer to two decimal places. Omit the "%" sign in your response.) Rate of return on an annual basis %

(c) Which alternative would you recommend purely from a financial perspective? (Click to select)Put the money in a bank savings account.Lend the money to Judy.

Reference no: EM13605457

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