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Find the amount of money owed at the end of 4 years if $50,000 is borrowed at 7% per year compounded weekly and no payments are made on the loan.

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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.

User Nick Kennedy
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