Posted by **RACHELLE** on Monday, June 9, 2008 at 5:57pm.

Barry and Steve are good friends. Barry wants to buy a new computer, but he doesn't have the money for it right now. Barry says he will pay Steve $2000.00 in five years if Steve gives him $1600.00 for the computer today. Steve figures that there is an interest rate of 6% if he were to put the money in a bank instead of lending it to Barry. Assuming that there is no risk of Barry not paying the $2000.00 when he says he will, should Steve go through with the loan or should he put his money in the bank? Explain the answer.

- arithmetic -
**Ms. Sue**, Monday, June 9, 2008 at 6:30pm
At 6% interest, Steve would earn $96 a year if he put the $1600 in the bank.

0.06 * 1600 = 96

What do you think Steve should do?

- arithmetic -
**william**, Wednesday, July 9, 2008 at 6:27pm
He should put the money in the bank.So that he doesnot hafe to make aloan later.

- arithmetic -
**jake**, Tuesday, August 26, 2008 at 5:01pm
Actually he could earn $2141+ if he put the money in the the bank for 5 years and he would have immediate access to it if he needed it.

## Answer this Question

## Related Questions

- math - Barry heard in his Personal Finance class that he should start investing ...
- Math - The total age of 4 brothers and sisters is 38. Barry is two years older ...
- math - Barry is getting an early start on this year's summer chores, he started ...
- math - Mike's number is 2000 more than Jerry's which is 400 less than Barry's. ...
- algebra - Sean and Barry are practicing in a 30-mile bike race. Sean averages 20...
- math - Perry and Barry ran an 120-meter race. When Barry crossed the finish line...
- math - Mike's number is 2000 more than Jerry's which is 400 less than Barry's. ...
- math - Barry's family drove 843 mi to see his grandparents. On the first day, ...
- math - Wayne will get $4200 if his salary is increase by 20%.Wayne's salary is ...
- math - Wayne will get $4200 if his salary is increase by 20%.Wayne's salary is ...