Question: 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

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.
b. Calculate the rate of return if the money is lent to Judy. Round your percentage answer to two decimal places.
c. Which alternative would you recommend? Explain your answer.

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