What is the annual percentage rate for an investement at 6% interest compounded weekley?
this is extremely urgent
x Turn on thread page Beta
- Thread Starter
- 18-03-2011 19:47
- 18-03-2011 20:24
If I invest $100 then after one week my investment is worth $106.
After two weeks it's worth 100*1.06^2 = $112.36
After three weeks it's worth 100*1.06^3 = $119.1016
After n weeks it's worth 100*1.06^n
One year = 52 weeks (plus one or two days to be precise).
Hopefully now you can get an answer for how much it's worth after one year, and then compare this to the initial amount $100 to get the APR.
[You can round to the nearest cent as you go along, or at the end, and compare both answers...]Last edited by liewchuan; 18-03-2011 at 20:25.