Problem1 your bank offers 3 percent annual interest on, Ask an Expert

Economics

Problem

1. Your bank offers 3 percent annual interest on savings deposits. If you deposit $560 today, how much interest will you have earned at the end of one year?

2. You have $350, which a friend would like to borrow. If you don't lend it to your friend, you could invest it in an opportunity that would pay out $392 at the end of the year. What annual interest rate should your friend offer you to make you indifferent between these two options?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92758081

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