Question

You borrow $10,000 to be paid off in equal weekly payments over the next 2 years....

You borrow $10,000 to be paid off in equal weekly payments over the next 2 years. The interest rate is 8% compounded semi-annually. Find the payment.

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Answer #1

Solution:-

To Calculate Effective Interest Rate compunded Annually -

Effective Interest Rate =

Effective Interest Rate =

Effective Interest Rate =

Effective Interest Rate = 8.16%

To Calculate Effective Interest Rate compunded Weekly -

Effective Interest Rate =

Effective Interest Rate = 0.15096%

To calculate Payment-

Payment =

Payment =

Payment =

Payment = $103.97

If you have any query related to question then feel free to ask me in a comment.Thanks.

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