compute the annual yeild for the following account. Weels Fargo offers a savings account with 5 3/4% interest compounded weekly. Show all your work.

Question

you need to have the original formula, the foumula with values included, the entire calculated value, and the rounded number.

Answer 1

Taking a year as 52 weeks, the weekly interest rate to be compounded is 5.75/52=0.110577%=0.00110577.

Using the formula growth (yield)=(1+r)ⁿ, where r is the rate and n the number of periods (weeks).

So the yield=1.00110577⁵²=1.05915 approx, that is, 5.92% over the year.