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!!!
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.
Thinking is cheating.
Thank you Bobbym!!!!!!!!!