Roe has borrowed k2500 and is being charged interest at 7.8% interest, compounded weekly
How much will she owe after 6 months
To calculate how much Roe will owe after 6 months, we need to first determine the number of weeks in 6 months.
There are approximately 4 weeks in a month, so 6 months would be 6 x 4 = 24 weeks.
Next, we can use the compound interest formula to calculate the amount Roe will owe after 6 months:
A = P(1 + r/n)^(nt)
Where:
A = the amount owed after 6 months
P = the principal amount borrowed (k2500)
r = the annual interest rate (7.8%)
n = the number of compounding periods per year (weekly compounding means n = 52)
t = the number of years the money is invested for (6 months = 0.5 years)
Plugging in the values:
A = k2500(1 + 0.078/52)^(52*0.5)
A = k2500(1 + 0.0015)^26
A = k2500(1.0015)^26
A = k2500(1.0398)
A = k2594.59
Therefore, after 6 months, Roe will owe approximately k2594.59.