Question

Buying a $36,000 new hybrid SUV with $3000 paid up front and the rest borrowed at 4.2%
annual interest compounded weekly (52 weeks per year) over 5 years.

Answer 1

From the calculations, the total amount paid for the SUV is $43,708.

What is compound interest?

The term compound interest has to do with an interest that is charged in both the principal and the interest.

In this case, the amount that was borrowed is  $36,000 - $3000 = $33,000. Using the formula;

A = P(1 + r/n)^nt

P =  $33,000

r = 4.2%

n = 52

t = 5 years

A = 33,000(1 + 0.042/52)^(52 * 5)

A = $40,708

Total amount paid = $40,708 + $3000 = $43,708

Learn more about compound interest:https://brainly.com/question/14295570?

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