Question

Madeleine owes $36,000 to a private lender. The debt grows with 12% annual interest that compounds every week. How much will Madeleine owe in one year?

Answer 1

A= $40584.28

Explanation:

P = 36000

r = 12% = 0.12

n = 52 weeks

t = 1

`A = P(1 + (r)/(n))^(nt)\\`

`=36000(1 + (0.12)/(52))^(52 * 1)\\\\=36000 (1.002307)^(52)\\\\=36000 * 1.12734\\\\=40584.28`