1% per day, compounded daily. If you borrow $80 at the beginning of the year, how...

1% per day, compounded daily. If you borrow $80 at the beginning of the year, how much will you owe one year later?

Expert Solution

We use the formula:
A=P(1+r/365)^365n
where
A=future value
P=present value
r=rate of interest
n=time period.

A=80*(1+0.01)^(365*1)

=80*37.7834343

=$3022.67(Approx)

jeff jeffy answered 2 years ago

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