Compute the interest rate and rate of return


Question: A friend has 4800 dollars that has been saved from her part time job, plus any interest earned on it, in 6 months & has asked for your help in deciding whether to put the money in a bank savings account at 5.5 percent interest or to lend it to Judy. Jury has promises to replay 5100 dollar after six months.

[A] Compute the interest rate earned on the savings account for 6 months
[B] Compute the rate of return if the money is lent to Judy. [Round your percentage answer to two decimals]

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Finance Basics: Compute the interest rate and rate of return
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