## Related questions with answers

The following problem is based on material learned earlier in the course. The purpose of these problems is to keep the material fresh in your mind so that you are better prepared for the final exam.

Nick has a credit card balance of $\$ 4200$. If the credit card company charges $18 \%$ interest compound daily, and Nick does not make any payments on the account, how long will it take for his balance to double? Round to two decimal places.

Solution

VerifiedIn this item, we must understand that a daily compound interest is defined by calculating and adding the interest amount from the daily accrued amount. Thus, if we are to solve for the compound daily interest on the second day, we must solve for the interest from the principal amount plus the accumulated interest from day $1$.

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