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#1 2013-02-19 08:31:08
- vatso
- Member
- Registered: 2013-02-19
- Posts: 5
Effective Annual Rate
If the effective weekly rate is 0.12%, the effective annual rate is? The correct answer is 6.43%. How you get this value? Thank you in advance!!!
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#2 2013-02-19 15:25:21
- bobbym
- bumpkin
- From: Bumpkinland
- Registered: 2009-04-12
- Posts: 109,606
Re: Effective Annual Rate
Hi vatso;
Experimentally, take a nice round figure of money like 100 dollars. Form the recurrence
with a(0) = 100 of course. Run it forward for 52 iterations, you get 106.43481. That is equal to an effective annual interest rate of 6.43 %.
Or use the formula
Last edited by bobbym (2013-02-19 15:28:20)
In mathematics, you don't understand things. You just get used to them.
If it ain't broke, fix it until it is.
Always satisfy the Prime Directive of getting the right answer above all else.
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#3 2013-02-20 01:43:17
- vatso
- Member
- Registered: 2013-02-19
- Posts: 5
Re: Effective Annual Rate
Thank you Bobbym!!!!!!!!!
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#4 2013-02-20 01:54:17
- bobbym
- bumpkin
- From: Bumpkinland
- Registered: 2009-04-12
- Posts: 109,606
Re: Effective Annual Rate
Hi;
Come back if you need more.
In mathematics, you don't understand things. You just get used to them.
If it ain't broke, fix it until it is.
Always satisfy the Prime Directive of getting the right answer above all else.
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