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A friend asks to borrow $50 from you and in return will pay you $53 in one year. If your bank is offering a 6.4%
A friend asks to borrow $50 from you and in return will pay you $53 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 $50 instead? b. How much money could you borrow today if you pay the bank $53 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 $50 instead? If you deposit the money in the bank today you will have $50 in one year. (Round to the nearest cent.)
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