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Calculation of Interest rate and Rate of Return.
A friend has $4800 that has been saved from her part-time job, 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 . Jury has promises to replay $5100 after 6 months.
a. Calculate the interest rate earned on the savings account for six months
b. Calculate the rate of return if the money is lent to Judy. Round your percentage answer to two decimals.
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