To finish a certain project, all expenses are borrowed until the project ends at which

time the debt is paid off. The interest on the debt is compounded daily at an interest

rate of .001

(a) Scenario 1: The initial loan covers all of the expenses. And the initial loan is $5000.

The project ends after 90 days. How much is owed at that time?

(b) Scenario 2: Initial loan of $500 and, each day thereafter, another loan of $50 is

taken out. There is also an overall administrative fee of $100 applied, payable when

the debt is due. Compute how much is owed at the end of the 90 days.

As an example, after the first day 1.001500 + 50 is the amount of accumulated debt.

(c) Which scenario is better for the project's finances?