Exercise $3-10($Algo$)$ Compare investment alternatives LO $3-2$

A friend has $$1,450$ that he has saved from his part$-$time job. He will need his money, plus any interest earned on it$,$ in six months and has asked for your help in deciding whether to put the money in a bank savings account at $5\mathrm{.}20\%$ interest or to lend it to Victor. Victor has promised to repay $$1,508$ after six months.

Required:

Calculate the interest earned on the savings account for six months.

Note: Round your answer to $2$ decimal places.

Calculate the annual rate of return if the money is lent to Victor.

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Which alternative would you recommend?