8. A friend asks to borrow $49 from you and in return will pay you $52 in one year. If your bank is offering a 5.9% interest rate on deposits and loans:

a. How much would you have in one year if you deposited the $49 instead?

b. How much money could you borrow today if you pay the bank $52 in one year?

c. Should you loan the money to your friend or deposit it in the bank?