Question

Joel takes out a loan with a stated rate of 11.85% interest. If the interest is calculated weekly, how much greater is Joel’s effective rate than his stated rate?

Answer 1

Effective interest rate is

R=((1+0.1185÷52)^(52)−1)×100=12.57%

How much greater

12.57−11.85=0.72%

Answer 2

Effective interest rate is
R=((1+0.1185÷52)^(52)−1)×100=12.57%

How much greater
12.57−11.85=0.72%