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.