Answer:
177.25%
Explanation:
For the two week period, the interest rate of $12 translates to
= [tex]\frac{12}{300}[/tex] = 4% per 2 weeks
In a year, there are 52 weeks (i.e 52/2 = 26 (2weeks)).
Thus, to annualize 4% in 2 weeks, we use the formula
[tex](1 + r)^{n} - 1[/tex]
where r is the rate per period (in this case 4%)
n is the number of periods in a year (in this case, 26)
Thus, annual rate = [tex](1 + 0.04)^{26} - 1[/tex]
= [tex](1.04)^{26} - 1[/tex]
= 2.7725 - 1
= 1.7725
= 177.25%.
