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a friend asks to borrow $51 from you and in return will pay you $54 in one year. If your bank is offering a 6.4%

a friend asks to borrow $51 from you and in return will pay you $54

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 $51 instead?

b. How much money could you borrow today if you pay the bank $54 in one year?

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

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