Question

A loan shark lends you $100 at 2% compound interest per week(weekly not annual rate)
How much will you owe after 3 years?
In "street language" the profit on such a loan is known as the "vigorish" or the "vig." Find the sharks's vig. A loan shark lends you $100 at 2% compound interest per week(weekly not annual rate)
How much will you owe after 3 years?
In "street language" the profit on such a loan is known as the "vigorish" or the "vig." Find the sharks's vig. @Mathematics

Answer 1

We can use the compound interest formula,
\[I = I_0 \left(1+{i \over n} \right)^{nt}\]\[I = 100 \left( 1+{0.02 \over 3} \right)^{52*3}\] The loan shark's "vig" is what you owe (I) minus 100.

Answer 2

thanx