Hello,
I answer each section of the problem; but I do not understand which is the best alternative out of interest earn or rate of return.
a.) Calculate the interests earn on the savings account for six months.
I = Principal*Rate*Time
I = ($4800) (0.055) (0.5)
I=132
b.) Calculate the rate of return if the money is lent to Judy.
Rate of return = Amount of return
Amount invested
= $5,100
$4,800
= 1.0625
= 1.0625
= .0625
=6.25
Which alternative would you recommend?