You borrowed $54,000 from a loan shark. He charges an annual interest rate of 21.9 percent but...

Question:

You borrowed $54,000 from a loan shark. He charges an annual interest rate of 21.9 percent but requires you to make weekly payments and pay the loan off in full within one year. given these terms, how much is each weekly payment? Show your answer to the nearest dollar.

Time value of money

Time value of money refers to the concept in finance in which the present sum of money has a greater value compared to its identical sum in the future in terms of real value. The opportunity of earning more in the future and receiving less over the same period was the contributing factor behind this concept.

Answer and Explanation: 1

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Formula on calculating the weekly payments:

{eq}Periodic~payments=\displaystyle\frac{LV}{\frac{1-(1+\frac{r}{m})^{-nm}}{\frac{r}{m}}}\\ whereas:\\ ...

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What is Annuity? - Definition & Formula

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Chapter 2 / Lesson 7
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An annuity is a fixed amount of income paid at regular intervals, such as monthly or quarterly. Learn the definition and formula for annuity, review examples of annuities, and understand how to determine the value of annuities.


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