The weeklyweekly payment on a 22year loan at 116116 compound

The weeklyweekly payment on a 22-year loan at 11.611.6% compounded weeklyweekly is $270.48270.48. Calculate the amount of the loan.

Solution

In order to do calculation, first convert all given annual values to weekly by dividing or multiplying by the factor of 52. (We assume there are 52 weeks per year)

The formula of compound interest is,

amount = principle * (1+r)^n

270.48 = p * (1+0.002231)^1144

p = 270.48 / (1.002231)^1144 = 270.48 / 12.79632

p = 21.13732

Hence the original loan amount was $21.13732