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A friend asks to borrow $55 $55 from you and in return will pay you $58 $58 in one year. If your bank is offering

A friend asks to borrow $55 $55 from you and in return will pay you $58 $58 in one year. If your bank is offering a 5.7% 5.7%

interest rate on deposits and loans:

a. How much would you have in one year if you deposited the $55 $55 instead?

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

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