Elementary Technical Mathematics

Published by Brooks Cole
ISBN 10: 1285199197
ISBN 13: 978-1-28519-919-1

Chapter 1 - Section 1.16 - Application Involving Percent: Business and Personal Finance - Exercises - Page 96: 18

Answer

approximately $\$34852.52$.

Work Step by Step

Let the money owed $=A$. The given values are Time $t=3\;years$. Borrowed $P=\$30,000$. Rate of interest $r=5\%=0.05$. Number of periods $n=52$. Formula $A=P(1+\frac{r}{n})^{nt}$. Substitute all values into the formula. $A=30,000(1+\frac{0.05}{52})^{52\cdot 3}$. Simplify. $A=30,000(1+\frac{0.05}{52})^{156}$ $A=30,000(1.00096153846)^{ 156}$ $A\approx34852.51$.
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