Suppose that a vegetable vendor pays 7% interest daily on a $10 loan. Then, suppose that this individual was able to save $0.50 per day by drinking less tea. Calculate the number of days it would take for the vendor to no longer need to borrow money in order to purchase $10 of vegetables (i.e. the day number on which no loan is needed).
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To calculate the number of days it would take for the vegetable vendor to no longer need to borrow money, we need to determine how much the vendor is able to save each day by drinking less tea.
Given that the vendor is able to save $0.50 per day, we can calculate the total amount saved after n number of days using the formula:
Total savings = Savings per day * Number of days
In this case, the total savings is equal to $10. Therefore, we can write the equation:
0.50 * Number of days = $10
Now, we can solve this equation for the value of "Number of days" by dividing both sides of the equation by 0.50:
Number of days = $10 / 0.50
Number of days = 20
Hence, it will take the vegetable vendor 20 days to no longer need to borrow money in order to purchase $10 worth of vegetables.