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.

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?

He should put the money in the bank.So that he doesnot hafe to make aloan later.

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.

Barry is a 45-year-old computer programmer who has never been married and lives with his mother. He spends his evenings and weekends either playing Scrabble with his mother, surfing the Internet or participating in chat rooms. His friend Eddie set him up on a blind date with a woman from his work. Yet Barry forgot the time and showed up so late that his date had already left, thinking she’d been stood up. Barry would like to date her, but is too ashamed to call and apologize for not keeping their date. Until recently, his work had been going really well, but after he missed an important project date, the client withdrew the contract offer.

write a paragraph from a neurobiological perspective

To answer this question, we need to compare the amount of money Steve would earn if he puts his money in a bank for five years with an interest rate of 6% versus the amount he would receive from Barry after lending him $1600.00.

To find out how much money Steve would earn if he puts his money in a bank, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the future value of the investment/loan, which is the amount of money Steve will have after five years if he puts the money in the bank.
P = the principal (initial amount), which is $1600.00.
r = the annual interest rate (as a decimal), which is 6% or 0.06.
n = the number of times that interest is compounded per year. We'll assume it's compounded annually, so n = 1.
t = the number of years, which is 5.

Plugging in these values into the formula, we get:

A = 1600(1 + 0.06/1)^(1*5)
A = 1600(1 + 0.06)^5
A ≈ 1600(1.06)^5
A ≈ 1600(1.3382255776)
A ≈ $2133.16 (rounded to two decimal places)

So, if Steve puts his money in a bank with a 6% interest rate, he would have approximately $2133.16 after five years.

On the other hand, if Steve lends Barry $1600.00 and agrees to receive $2000.00 after five years, he would be making a profit of $400.00 ($2000.00 - $1600.00).

Comparing the two options, if Steve puts his money in the bank, he would have approximately $2133.16 after five years, while if he lends the money to Barry, he would have $2000.00 after five years. Therefore, it would be more profitable for Steve to put his money in the bank and earn interest rather than lending it to Barry in this scenario.