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Ken just purchased new furniture for his house at a cost of $16,400. The loan calls for weekly payments for the next 7 years at an annual interest rate of 10.99 percent. How much are his weekly payments?

Respuesta :

akindeleot

Answer:

His payments are $64.63 every week.

Explanation:

P = Regular Payments  = ?

PV = Loan Amount  = $16,400

r = rate of interest  = 10.99%

n = no of periods  = 7 = 364

P = [r (PV) ]   /   [1 - (1 + r )^-n]

P = (10.99%/52)*16400   /   1 - [1 / (1 + 10.99%/52)^364)]

P = 34.66076923 /  1 - [1 / 2.156503587]

P = 34.66076923 / 0.53628642

P = 64.63107760588

P ≈ $64.63 weekly

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