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

Answer:

A= $40584.28      

Step-by-step explanation:

P = 36000

r = 12% = 0.12

n = 52 weeks

t = 1

$A = P(1 + \frac{r}{n})^{nt}$

   $=36000(1 + \frac{0.12}{52})^{52 \times 1}\\\\=36000 (1.002307)^{52}\\\\=36000 \times 1.12734\\\\=40584.28$