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**vatso****Member**- Registered: 2013-02-19
- Posts: 5

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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**bobbym****Administrator**- From: Bumpkinland
- Registered: 2009-04-12
- Posts: 105,282

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.****No great discovery was ever made without a bold guess. **

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**vatso****Member**- Registered: 2013-02-19
- Posts: 5

Thank you Bobbym!!!!!!!!!

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**bobbym****Administrator**- From: Bumpkinland
- Registered: 2009-04-12
- Posts: 105,282

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.****No great discovery was ever made without a bold guess. **

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