Question 1076661: Sarah want to save an amount of R100000 in two years time for deposit on townhouse.she wants to make weekly payments into an account that offers an 8% yearly interest rate, compounded weekly.determine the size of her weekly payments.
Answer by jorel1380(3719)   (Show Source):
You can put this solution on YOUR website! If Sarah is saving each week for 2 years,compounded weekly, then she makes a total of 104 payments, at .08/52, or 0.15385% interest each week. So:
100000=P[(1+.0015385)^104-1]/.0015385
153.85=P(0.17337128198498002006399816563696)
P=R 887.41 as the necessary amount of Sarah's weekly payment, in order to have an account balance of R100000 at the end of 2 years. ☺☺☺☺
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