alanforde800Maximus wrote:Johnny borrows $30,000 from Tony at 2% daily interest compounded daily. How much does Johnny owe Tony after 8 weeks?
a) 30000*0.02^56
b) 30000*1.12
c) 30000*2.12
d) 30000*1.02^56
e) (30000*1.02)^56
To increase x by 2% is to multiply x by a factor of 1.02:
1.02x.
Here, the borrowed amount increases by 2% every day for 8 weeks, for a total of 56 days.
Thus, the borrowed amount -- $30,000 -- will be multiplied by a factor of 1.02 56 times:
(30,000)(1.02)��.
The correct answer is
D.
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