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A friend asks to borrow $46 from you, and in return will pay you $49 in...

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?
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Answer #1

Given information

1)Future value of amount that required to pay to bank = $49

2) Term of loan = 1 year

3) discount rate / lending rate from bank = 6.3% p.a

present value of moeny = Future value of money × present value factor ( r%, n)

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