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The following month, Simn borrows from Valentina another $ 100,000. Valentina lends her, but warns her that she charges the same 1% daily but compounded
The following month, Simn borrows from Valentina another $ 100,000. Valentina lends her, but warns her that she charges the same 1% daily but compounded interest and that on the day she pays her, she will give her the value of the entire debt.
Complete the following table that represents the value of Simn's debt over time (from Valentina's point of view it would be the value of his investment)
| t(days) | debt value |
| DAY 0 | $100.000 |
| DAY 1 | |
| DAY 2 | |
| DAY 3 | |
| DAY 4 | |
| ... | |
| DAY 30 | |
| ... | |
| DAY t |
If this model continues, how long will Simn's debt double?
Graphically represent the model found and indicate what type of function it corresponds
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Advanced Accounting
Authors: Debra C. Jeter, Paul Chaney
2nd Edition
0471218529, 978-0471218524
