You plan to borrow $ 4 comma 000 from a bank. In exchange for $ 4 comma 000 today, you promise to pay $ 4 comma 160 in one year. What does the cash flow timeline look like from your perspective? What does it look like from the bank's perspective?

Please check the attached image for the diagram

Explanation:

I would be borrowing $4000 from the bank. I would be $4,000 richer and the bank would have $4000 less.

In one year, I would be paying the bank $4160. So I would have $4160 less and the bank would be $4160 richer.

A negative sign indicates cash outflow and a positive sign indicates a cash inflow.

I hope my answer helps you.

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