Question

A friend asks to borrow

$ 47$47

from you and in return will pay you

$ 50$50

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

$ 47$47

instead?

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

$ 50$50

in one year?

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

Answer #1

a)

b)

c)

**Yes, i should given loan to friend.**

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?

A friend asks to borrow $49 from you and in return will pay you
$52 in one year. If your bank is offering a 6.5% interest rate on
deposits and loans:
A. How much would you have in one year if you deposited the $49
instead?
B. How much money could you borrow today if you pay the bank $52
in one year?
C. Should you loan the money to your friend or deposit it in the
bank?

A friend asks to borrow $48 from you and in return will pay you
$51 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 $48
instead?
b. How much money could you borrow today if you pay the bank $51
in one year?
c. Should you loan the money to your friend or deposit it in
the bank?

A friend asks to borrow $49 from you and in return will pay you
$52 in one year. If your bank is offering a. 6.1% interest rate on
deposits and loans: a. How much would you have in one year if you
deposited the $49 instead? b. How much money could you borrow
today if you pay the bank $52 in one year? c. Should you loan the
money to your friend or deposit it in the bank?
a. How...

A friend asks to borrow $46 from you, and in return will pay
you $49 in 1 year. If your bank is offering a 6.3% interest rate on
deposits and loans
How much money could you borrow today if you pay the bank $49
in one year?

Compound Interest
You borrow 1,000,000 for one year from a friend at an interest rate
of 1% per month instead of taking a loan from a bank at a rate of
13% per year. Compare how much money you will save or lose on the
transaction.

1. Suppose you deposit $130 into a bank today, earning 2.5%
interest. How much would you have after one year?
2. You expect to have $1,000 in one year. A bank is offering
loans at 7.0 % interest per year. How much can you borrow today if
you plan to use this money to repay the loan? Round to the nearest
whole cent.

A friend wants to borrow money from you. He states that he will
pay you $3,600 every 6 months for 11 years with the first payment
exactly 4 years and six months from today. The interest rate is an
APR of 5.9 percent with semiannual compounding. What is the value
of the payments today?

A friend wants to borrow money from you. He states that he will
pay you $3,800 every 6 months for 13 years with the first payment
exactly 6 years and six months from today. The interest rate is 6.1
percent compounded semiannually. What is the value of the payments
today?

A friend wants to borrow money from you. He states that he will
pay you $3,400 every 6 months for 9 years with the first payment
exactly 7 years and six months from today. The interest rate is 5.7
percent compounded semiannually. What is the value of the payments
today?
$32,128.58
$33,021.49
$35,079.17
$31,070.77
$31,956.28

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