Question

Previous Problem Problem List Next Problem (6 points) Jennifer borrowed $3300 from the bank in order to buy a new camper. She will pay it off by equal payments at the end of each week for 3 years. The annual interest rate is 7.85%. Determine the size of payments, and the total interest paid. Express your answers rounded to the nearest centi Payments: $ Total interest: $ If you haven't answered the question correctly in 3 attempts, you can get a hint. Note: In order to get credit for this problem all answers must be correct You are in the Reduced Scoring Period: All additional work done counts 50% of the original

Answer 1

Answer:

the size of payments is $23.69

total interest is  $777.15

Step-by-step explanation:

Given data

principal (p) = $3300

rate (r) = 7.85 % =

time period (t) = 3 years = 3 × 365/7 weeks

to find out

the size of payments, and the total interest paid

solution

we know interest is yearly so in weekly interest will be i.e.

interest = 0.0785 × 7/365

so total interest will be here i.e

interest = p × r × t

put all value for weekly interest

total interest = 3300 × (7.85 × 7/365) ×  (3 × 365/7) = 777.15

total interest is  $777.15

now we calculate amount per weekly i.e. given by formula

payment = principal $(1+r)^{t} r / (1+r)^{t} -1$

now put all value principal rate time  we get payment amount per week

payment = principal $(1+r)^{t} r /(1+r)^{t} -1$

payment = 3300 $(1+0.0785*7/365)^{3*365/7}0.0785*7/365 / (1+0.0785*7/365)^{3*365/7} -1$

payment = 23.693143

the size of payments is $23.69