By Admin on Sep 28, 2009 in Mathematics
Ge64 asked:
A man owes the bank 1 million dollars. Every year he pays the bank 50000 dollars to decrease his debt. Also, every year the bank charges 60% interest which increases the debt.
A man owes the bank 1 million dollars. Every year he pays the bank 50000 dollars to decrease his debt. Also, every year the bank charges 60% interest which increases the debt.
How many years will it take for the debt to be one million million dollars, or 10^12?
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Compound interest, eg the interest (60%) is calculated over the amount minus the 50k each time, and the absolute interest becomes more every year because the amount increases.
what interest simple or compound
doctor | Sep 30, 2009 | Reply