SOLUTION: Jennifer borrowed $3600 from the bank in order to buy a new piano. She will pay it off by equal payments at the end of each week for 2 years. The annual interest rate is 4.4%. Det

Question 1080420: Jennifer borrowed $3600 from the bank in order to buy a new piano. She will pay it off by equal payments at the end of each week for 2 years. The annual interest rate is 4.4%. Determine the size of payments, and the total interest paid.
Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
The following formula is used to calculate the fixed monthly payment (P) required to fully amortize a loan of L dollars over a term of n weeks at an weekly interest rate of c. [If the quoted rate is 6%, for example, c is .06/52 or 0.0011538461]: P = L[c(1 + c)^n]/[(1 + c)^n - 1].
So,in this example we have:
P=3600[(0.00084615384(1+0.00084615384)^104]/[(1+0.00084615384)^104-1]
P=3600[0.00092395556]/[0.09194748944748435113000706288373]
P=$36.18/week
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