Suppose that a vegetable vendor pays 7% interest daily on a $10 loan. Then, suppose that this individual was able to save $0.50 per day by drinking less tea. Calculate the number of days it would take for the vendor to no longer need to borrow money in order to purchase $10 of vegetables (i.e. the day number on which no loan is needed).

Question

anonymous · Answer

I'm not sure I understand this question really. He saves 50 cents a day, but the daily interest rate is 70 cents. He would never be able to pay it back, would he?

anonymous · Answer

You are right he pays 70 cents everyday. he started saving 50 cents over and above covering all the cost including interest. I am not sure but he will have 50 cents extra next day, requiring to borrow less by 50 cents, thereby saving additional interest cost of 7% on 50 cents. in such manner how many days he will take to accumulate $10, when he will not need to borrow.

anonymous · Answer

Hi my friend!

The solution is:

14 Days!
 
Greeting from Greece

perl · Answer

how did you get 14 days?

anonymous · Answer

22