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?