he quoted annual interest rate compounded weekly, which is equivalent to a stated rate of 12%...

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Question

he quoted annual interest rate compounded weekly, which is equivalent to a stated rate of 12% with monthly compounding, is about:

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business finance

Answer 1

Answer #1

rate positively ..

First we have to compute the monthly compuding into EAR

EAR =	(1+12%/12)^12-1
	12.68%

Annual rate compouding weekely =

Weekly eq rate =	((1+12.68%)^(1/52)-1)*52
		11.95%

Ans =		11.95%

Answer 2

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