1. You have $900 and a bank is offering 4.0% interest on deposits. If you deposit the money in the bank, how much will you have in one year?

2. You expect to have $7,000 in one year. A bank is offering loans at 3.5% interest per year. How much can you borrow today?

3. A friend asks to borrow $46 from you and in return will pay you $49 in one year. If your bank is offering a 6.2% interest rate on deposits and loans:

How much would you have in one year if you deposited the $46 instead?

4. If your bank pays you 1.7% interest and you deposit $850 today, what will be your balance in seven years?

5. What is the present value of $5,000 received:

a. Twenty eight years from today when the interest rate is 9% per year?