Then the equivalent weekly compounded rate equals 1. 14.464% 2. 14.484% 3. 14.816% 4. 14.837% 5. None of the above
in Other Math Topics by

Your answer

Your name to display (optional):
Privacy: Your email address will only be used for sending these notifications.
Anti-spam verification:
To avoid this verification in future, please log in or register.

1 Answer

15% annually is 2.5% (15/6) every two months, compounded over the year gives 1.025^6-1=1.15969-1=0.15969 or 15.97%, which is 15.97/52 weekly=0.3071%. If 15% is the result of applying compound interest, then (1+r)^6=1.15, so r (the 2-monthly rate)=0.023567 or 2.3567%. If 15% is spread over 52 weeks, we have 15/52=0.28846%, then over a year we have 1.0028846^52=1.161583 or 16.15%. If 15% is the result of applying a weekly rate of 0.28846%, then (1+r)^52=1.15 so r=0.002691 or 0.2691%. Taking a month as 30.6 days, two months is 61.2 days and 61.2*0.2691=16.47% approx.

by Top Rated User (1.0m points)

Related questions

Welcome to MathHomeworkAnswers.org, where students, teachers and math enthusiasts can ask and answer any math question. Get help and answers to any math problem including algebra, trigonometry, geometry, calculus, trigonometry, fractions, solving expression, simplifying expressions and more. Get answers to math questions. Help is always 100% free!
87,024 questions
96,354 answers
2,362 comments
24,341 users