Answer:
annual percentage rate: 7.0404%
Explanation:
We need to solve for the annual convertible rate when we are given with the annual effective rate:
[tex](1+APR/52)^{52}=1+0.07289\\APR =( \sqrt[52]{1.07289} -1) \times 52\\[/tex]
apr = 0.0704035593 = 7.0404%
Answer:
7.0403
Explanation:
Suppose the initial investment is $1, we start the formula rEFF=A−P0P0. Next, substituting, we now have 0.07289=A−11 or 0.07289=A−1, so A=$1.07289. We now use this value for A in the formula A=P0⋅(1+rk)N⋅k with P0=$1, k=52 compounding periods for weekly compounded interest, N=1 year, and r is the unknown monthly compounded interest rate for which we are solving. Plug the values into the formula. Take the fifty-second root of both sides. Next, subtract 1 from both sides, and multiply both sides by 52.
1.072891.00135390.00135390.0704028=(1+r52)52=1+r52=r52=r
The final step gives us 0.0704028, converted into a percentage and rounded to four decimal places is 7.0403.
