You borrow 32,903 and repay the loan over 2 years by making weekly repayments at an interest rate of 15% per annum, compounded weekly. What is the size of each weekly repayment? Please write the answer in two decimal places.

Solution

Y o u b orro w 32, 903 an d re p a y t h e l o an o v er 2 ye a rs b y makin g w ee k l y re p a y m e n t s a t an in t eres t r a t e o f 15% p er ann u m, co m p o u n d e d w ee k l y . Wha t i s t h e s i ze o f e a c h w ee k l y re p a y m e n t ? Pl e a se w r i t e t h e an s w er in tw o d ec ima l pl a ces .

Amount : 44395.23

Solution steps

Translate the problem into an equation:

A = 32903 (1 + \frac{0.15}{52})^{52 \cdot 2}

32903 (1 + \frac{0.15}{52})^{52 \cdot 2} = 44395.22759 \dots

Round to the nearest hundredth:

44395.23

Amount : 44395.23