Question

Ken just purchased new furniture for his house at a cost of $15,600. The loan calls for weekly payments for the next 7 years at an annual interest rate of 10.51 percent. How much are his weekly payments

Answer 1

$60.58

Explanation:

According to the given situation the computation of weekly payments is shown below:-

Weekly payments = Loan ÷ (1 - (1 ÷ (1 + r^n))) ÷ r

= $15,600 ÷ (1 - (1 ÷ (1.0020211 ^364))) ÷ 0.00202115

= $60.58

here r = interest rate, n = time period

Therefore for computing the weekly payment we simply applied the above formula.

So, the correct answer is $60.58