Question

2. Carmen borrowed $250.00 from a payday loan store and agreed to repay it in 18days, at a rate of 1.17% per day. How much did she have to repay?

Answer 1

In this problem

we have an exponential growth function of the form

$y=a(1+r)^x$

where

a is the initial value --------> a=$250.00

r=1.17%=0.0117

x is the number of days

y is the total amount

substitute given values

$\begin{gathered} y=250(1+0.0117)^x \\ y=250(1.0117)^x \end{gathered}$

For x=18 days

$\begin{gathered} y=250(1.0117)^{18} \\ y=\ 308.23 \end{gathered}$

The answer is $308.23