A friend asks to borrow $ 45 from you and in return will pay you $ 48 in one year. If your bank is offering a 6.4% interest rate on deposits and loans:

a. How much would you have in one year if you deposited the $ 45 instead?

b. How much money could you borrow today if you pay the bank $ 48 in one year?

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

a. How much would you have in one year if you deposited the $ 45 instead?