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

tkhunny · Answer

What are the terms of the loan?  Is it a one-day thing?

I = 10*0.07*(1/365) = 0.00191780