Compute annual rate of return if money is loaned


A friend has $2,400 that she has saved from her job. She will need her money, plus any interest earned on it in six months. She can either put the money in a savings account at 5.5% or lend to Judy who has promised to pay $2,480 after six months. Calculate the interest earned on the savings account after six months Calculate the annual rate of return if the money is loaned to Judy.

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Finance Basics: Compute annual rate of return if money is loaned
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