(Answered) Question - a friend has 1100 that has been saved from her

Accounting

Question - 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.

b. Calculate the rate of return if the money is lent to Simone.

c. Which alternative would you recommend?

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