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

5.9 %5.9%

interest rate on deposits and loans:

a. How much would you have in one year if you deposited the

$ 55$55

instead?

b. How much money could you borrow today if you pay the bank

$ 58$58

in one year?

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