A friend has $1,100 that has been saved from her part-time job.


Question Description:

24.99

A friend has $1,100 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 3.8% interest or to lend it to Simone. Simone has promised to repay $1,139 after six months Required: a. Calculate the interest earned on the savings account for six months. (Round your answer to 2 decimal places. (e.g., 32.16)) Interest earned ____________ b. Calculate the rate of return if the money is lent to Simone. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16) Rate of Return on an Annual Basis ________________% (sorry this I red front) c.Which alternative would you recommend ? ___Put the money in a bank savings account. ____Lend the money to Simone. Thanks!

Answer

24.99