At the beginning of August, you decide to buy a 65” TV which costs $2000. You don’t need it until the beginning of February for a Superbowl party you are hosting; so, you decide to put the TV on...

At the beginning of August, you decide to buy a 65” TV which costs $2000. You don’t need it until the beginning of February for a Superbowl party you are hosting; so, you decide to put the TV on layaway. For layaway, you have to pay an initial service fee of $15 along with 10% of the cost of the item. After placing the TV in layaway, you pay off the remaining cost of the TV in 26 weeks. If the annual interest rate is 15% compounded weekly (assume 52 weeks in a year), how much are your weekly installments? How much did you pay overall using the layaway program?

Extracted text: Simple Interest Calculations Cash Flow Diagram Name Formula I = Pni interest earned over n periods future value related to present F = P(1+ ni) din> value 3 lender loans P and collects F after 5 periods Coub present value related to future 1+ ni value Compound Interest Calculations Cash Flow Diagram Formula Name future value related to present F = P(1 + i)" value 2 3 5 lender loans Pand collects Fafter 5 periods coub present value related to future value P = F(1+ i)¯" A [(1 + i)" F = A future value accumulated due to n 4 periodic deposits of amount A Coub person saves A for 5 periods