Answer:
(a) Amount owed after 2 years is $ 1081.54
(b) The shark's vig is $ 1031.54
Step-by-step explanation:
(a)
The amount on a principal, <em>P</em>, after a period, <em>T</em>, at a compound interest, <em>R</em>, is given by
From the question,
<em>P</em> = $ 50
<em>R</em> = 3% per week
<em>T</em> = number of weeks in 2 years = 2 × 52 = 104 (Assuming 52 weeks for each year)
(b)
The shark's vig = $ 1081.54 - $ 50 = $ 1031.54