Answer
(a) 45,500
(b) 45,744
(c) 244 dollars less
Work Step by Step
(a) The amount she would owe her family with simple interest is:
$$ =(35,000)(1+(.06)(5)) \\=45,500$$
(b) The amount she would owe the bank is:
$$ =(35,000)(1.055^5) \\ =45744$$
(c) She would pay 244 dollars less interest by borrowing from her family.
