SOLUTION: Mr. Miser loans money at an annual rate of 73 percent compounded daily. You decide to borrow $10,000 from him and must repay the full principal and interest at the end of 2 years.
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Question 586803: Mr. Miser loans money at an annual rate of 73 percent compounded daily. You decide to borrow $10,000 from him and must repay the full principal and interest at the end of 2 years. How much must you repay him to pay off the loan?
is what you want to know. is the original principal amount, is the interest rate expressed as a decimal fraction, is the number of compounding periods in one year -- 365 is close enough for daily compounding. And is the number of years.
Just plug in the values and do the arithmetic
John
My calculator said it, I believe it, that settles it
