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

mertsj · Answer

I guess I don't understand the problem because he pays $0.70 per day interest and saves only $0.50  Doesn't seem that he is ever going to get out of debt.

anonymous · Answer

ya thats what i thought but there has to be some kind of a formula for that i guess

mertsj · Answer

What topic are you studying in your class?

anonymous · Answer

the topic is savings and this problem is based on compunding ineterests

anonymous · Answer

I agree. No matter what he's always losing .20 sorry.