Question
A friend asks to borrow $48 from you and in return will pay you $51 in one year. If your bank is offering a 6.4%
A friend asks to borrow $48 from you and in return will pay you $51 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 $48 instead?
b. How much money could you borrow today if you pay the bank $51 in one year?
c. Should you loan the money to your friend or deposit it in the bank?
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
2nd Edition
0073530638, 9780073530635
