Answer:
Explanation:
To find the amount of money owed at the end of 4 years when $50,000 is borrowed at 7% per year compounded weekly, you can use the formula for compound interest:
\[ A = P \times \left(1 + \frac{r}{n}\right)^{nt} \]
Where:
- \( A \) is the amount of money owed at the end of the period.
- \( P \) is the initial principal (borrowed amount), which is $50,000.
- \( r \) is the annual interest rate (as a decimal), which is \( 7\% = 0.07 \).
- \( n \) is the number of compounding periods per year, which is 52 (weekly compounding).
- \( t \) is the number of years, which is 4.
Plugging in the values:
\[ A = 50000 \times \left(1 + \frac{0.07}{52}\right)^{52 \times 4} \]
Calculating this:
\[ A \approx 50000 \times 1.32313228 \approx 66156.61 \]
So, the amount of money owed at the end of 4 years is approximately $66,156.61.