Exercise 3-8 Compare investment alternatives LO 2 A friend has $1,300 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 4% interest or to lend it to Simone. Simone has promised to repay $1,339 after six months. Required a. Calculate the interest earned on the savings account for six months. (Round your answer to 2 decimal places.) Interest earned b. Calculate the annual rate of return if the money is lent to Simone. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return on an annual basis c. Which alternative would you recommend? Lend the money to Simone. OPut the money in a bank savings account