A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is offering an 6.5% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $47 instead? b. How much money could you borrow today if you pay the bank $50 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $47 instead? If you deposit the money in the bank today you will have $____ in one year. (Round to the nearest cent.)
A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is offering an 6.5% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $47 instead? b. How much money could you borrow today if you pay the bank $50 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $47 instead? If you deposit the money in the bank today you will have $____ in one year. (Round to the nearest cent.)
Chapter7: Credit Cards And Consumer Loans
Section: Chapter Questions
Problem 2LTAI
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A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is offering an 6.5% interest rate on deposits and loans:
a. How much would you have in one year if you deposited the $47 instead?
b. How much money could you borrow today if you pay the bank $50 in one year?
c. Should you loan the money to your friend or deposit it in the bank?
a. How much would you have in one year if you deposited the $47 instead?
If you deposit the money in the bank today you will have $____ in one year. (Round to the nearest cent.)
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