Your friend Amber has approached you seeking advice concerning two investment opportunities that she is presently considering. Her classmate Simone has asked her for a loan of $5,000 to help establish a small business; her neighbor Riley would like to borrow $6,000 as a personal loan. One year from now, Amber’s original investment will be returned in either case, along with $700 of income from Simone or $780 of income from Riley. Amber can make only one investment.

Required:
a. Which investment would you advise Amber to make? Why? Round your percentage answer to two decimal places.
b. What other factors should you advise Amber to consider before making either investment?