SOLUTION: please help me find the effective rate corresponding to the nominal rate of 5.47% compounded weekly. when using weekly what will I be multiplying by? i know that quarterly is by

Algebra ->  Equations -> SOLUTION: please help me find the effective rate corresponding to the nominal rate of 5.47% compounded weekly. when using weekly what will I be multiplying by? i know that quarterly is by      Log On


   

Question 706802: please help me find the effective rate corresponding to the nominal rate of 5.47% compounded weekly.
when using weekly what will I be multiplying by?
i know that quarterly is by 4.
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
There are 52 weeks in a year (since 52*7 = 364, so that's close enough)

So instead of using the number 4, you're using the number 52 in your formula.


Hint: the effective rate formula is


EAR = (1 + r/n)^n - 1

where

r = nominal rate (usually the APR)

n = compounding frequency (in this case, n = 52)

Note: EAR stands for effective annual rate