Discussion about math, puzzles, games and fun. Useful symbols: ÷ × ½ √ ∞ ≠ ≤ ≥ ≈ ⇒ ± ∈ Δ θ ∴ ∑ ∫ π -¹ ² ³ °

You are not logged in.

- Topics: Active | Unanswered

Pages: **1**

**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!!!

Offline

**bobbym****Administrator**- From: Bumpkinland
- Registered: 2009-04-12
- Posts: 102,957

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.** **A number by itself is useful, but it is far more useful to know how accurate or certain that number is.**

Offline

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

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

Offline

**bobbym****Administrator**- From: Bumpkinland
- Registered: 2009-04-12
- Posts: 102,957

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.** **A number by itself is useful, but it is far more useful to know how accurate or certain that number is.**

Offline

Pages: **1**