Question

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

Answer 1

c. Whether you should loan the money to your friend or deposit it in the bank depends on various factors such as the interest rate offered by the bank, your friend's ability to repay the loan, and your own financial goals and risk tolerance. It's important to carefully consider these factors before making a decision.