SOLUTION: Jessica borrowed $4900 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 interest rate is 4% compounded week
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-> SOLUTION: Jessica borrowed $4900 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 interest rate is 4% compounded week
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Question 1201067: Jessica borrowed $4900 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 interest rate is 4% compounded weekly. Determine the size of payments, and the total interest paid. Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! she will need to pay 49.04 at the end of each week.
calculator used is at https://arachnoid.com/finance/
results are shown below:
present value is positive because it's money received.
payment is negative because it's money spent.
payments are made at the end of each time period.
time periods are in weeks.
number of weeks is 2 years * 52 = 104.
interest rate per week = 4% / 52 = .076923077% per week.
