Question

a high-interest loan company uses the function l( d) = 100 e 0.02 d to calculate late fees, l, for payments overdue by d days. what does l(67) represent?

Answer 1

l(67) represents the late fee calculated by the high-interest loan company for payments that are 67 days overdue. The value is approximately 619.15.

Step-by-step explanation:

The given function is l(d) = 100e^(0.02d), where d represents the number of days the payment is overdue. To find what l(67) represents, we substitute 67 into the function: l(67) = 100e^(0.02*67). Using a calculator to evaluate the exponential term, we find l(67) ≈ 100e^(1.34) ≈ 619.15. In financial contexts, such functions are commonly used to model the accrual of fees or interest over time, providing a mathematical representation of how charges accumulate based on the number of days a payment is overdue.