How much money could you borrow today

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Reference no: EM13257930

A friend asks to borrow $52 from you and in return will pay you $55 in one year. If your bank is offering a 5.6% interest rate on deposits and loans:

A. How much would you have in one year if you deposited the $52 instead?
B. How much money could you borrow today if you pay the bank $55 in one year?
C. Should you loan the money to your friend or deposit it in the bank?

Reference no: EM13257930

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