Question

Your family borrowed $400,000 from the bank to purchase a new home. If the bank charges 3.8%
interest per year, compounded weekly, it will take 25 years to pay off the loan. How much will each
weekly payment be?

Answer 1

Answer:

472.19

Step-by-step explanation:

$472.19 weekly

Answer 2

Thus the required weekly installment is $402.30 for 25 years.

Given,
The family borrowed $400,000 from the bank to purchase a new home.
the bank charges 3.8% interest per year, compounded weekly, it will take 25 years to pay off the loan. How much will each weekly payment to be determined?

What is Statistic?

Statistics is the study of mathematics that deals with relations between comprehensive data.

The principle amount to refund = 400,000
Let the principle amount for weekly = P
Rate per year = 3.8%
Tenure = 25 year
For weekly installments,
52 Weeks in a year
Tenure = 25/52

Now,
$Amount = P(1-(1+r)^{-tn})/i\\400000 = P (1-(1+0.038/52)^{-25*52}) / (0.038/52)\\400000 * 0.038/52 = P(1-(52.038)^{-25*52})\\292.30 = P(1-(1.001)^{-1300})\\292.30 = P(1-0.273)\\292.30=P * 0.727\\P = 402.30$

Thus the required weekly installment is $402.30 for 25 years.

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