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Suppose the annual interest rate is 4% compounded weekly. What is the weekly (periodic) interest rate? in percent, rounded to three decimal places. Type your numeric and submit Unanswered −3 attempts left :=

User Cadence
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Final answer:

The weekly (periodic) interest rate for an annual interest rate of 4% compounded weekly is approximately 0.077%.

Step-by-step explanation:

To find the weekly (periodic) interest rate, we need to divide the annual interest rate by the number of compounding periods in a year. In this case, the interest is compounded weekly, so there are 52 compounding periods in a year.

To calculate the weekly (periodic) interest rate, we can use the formula:

Periodic Interest Rate = ((1 + Annual Interest Rate)^(1/number of compounding periods)) - 1

Plugging in the values, the weekly (periodic) interest rate would be:

((1 + 0.04)^(1/52)) - 1 = 0.000769230769

Therefore, the weekly (periodic) interest rate, rounded to three decimal places, is approximately 0.077%.

User Nitheesh George
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