A friend asks to borrow $53 from you and in return will pay you $56 in one year. If your bank is offering a 5.6% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $53 instead? b. How much money could you borrow today if you pay the bank $56 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 $53 instead?

If you deposit the money in the bank today you will have $________ in one year. (Round to the nearest cent.)

b. How much money could you borrow today if you pay the bank $56 in one year? You will be able to borrow $_______ today.(Round to the nearest cent.)

c. Should you loan the money to your friend or deposit it in the bank?(Select from the drop-down menu.) From a financial perspective, you should (deposit the money in the bank / lend the money to your friend), as it will result in more money for you at the end of the year. (Pick one Deposit or Lend)