a. If you deposited the $54 in your bank at an interest rate of 6.5%, the amount you would have in one year can be calculated using the formula for simple interest: A = P(1 + rt), where A is the amount of money accumulated after n years, including interest. P is the principal amount (the initial amount of money), r is the annual interest rate (in decimal), and t is the time in years.

So, A = $54(1 + 0.065*1) = $54 * 1.065 = $57.51

b. If you loan the money to your friend, you will get $57 in one year. If you deposit it in the bank, you will get $57.51 in one year. So, you would gain more by depositing the money in the bank. Therefore, it would be better to deposit the money in the bank rather than loaning it to your friend.

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a. If you deposited the $54 in your bank at an interest rate of 6.5%, the amount you would have in one year can be calculated using the formula for simple interest: A = P(1 + rt), where A is the amount of money accumulated after n years, including interest. P is the principal amount (the initial amount of money), r is the annual interest rate (in decimal), and t is the time in years.

So, A = $54(1 + 0.065*1) = $54 * 1.065 = $57.51

b. If you loan the money to your friend, you will get $57 in one year. If you deposit it in the bank, you will get $57.51 in one year. So, you would gain more by depositing the money in the bank. Therefore, it would be better to deposit the money in the bank rather than loaning it to your friend.

Knowee AI · Accepted Answer

a. If you deposited the $54 in your bank at an interest rate of 6.5%, the amount you would have in one year can be calculated using the formula for simple interest: A = P(1 + rt), where A is the amount of money accumulated after n years, including interest. P is the principal amount (the initial amount of money), r is the annual interest rate (in decimal), and t is the time in years.

So, A = $54(1 + 0.065*1) = $54 * 1.065 = $57.51

b. If you loan the money to your friend, you will get $57 in one year. If you deposit it in the bank, you will get $57.51 in one year. So, you would gain more by depositing the money in the bank. Therefore, it would be better to deposit the money in the bank rather than loaning it to your friend.

A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is offering a 6.5% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $54 instead? b. Should you loan the money to your friend or deposit it in the bank?

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