Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Experience the ease of finding quick and accurate answers to your questions from professionals on our platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.
Sagot :
Tiffany's effective interest is compounded weekly is 0.1604% greater than the compounded semiannually.
Compound interest is when you earn interest on both the money you've saved and the interest you earn.
Given,
The interest rate i= 8.145%
Number of weeks in an year n= 52
We know,
Effective interest rate =[tex](1+\frac{i}{n})^{n}-1[/tex]
Substitute the values
[tex]R_{1}=(1+\frac{0.08145}{52})^{52}-1\\ R_{1}= 0.084789[/tex]
Case 2
Compounded semiannually
[tex]R_{2}=(1+\frac{0.08145}{2})^{2}-1\\ R_{2}=0.083108[/tex]
The difference is
[tex]R_{1}-R_{2}= 0.084789-0.083185[/tex]
=0.001604
=0.1604%
Hence, the Tiffany's effective interest is compounded weekly is 0.1604% greater than the compounded semiannually
Learn more about compound interest here
brainly.com/question/26457073
#SPJ4
Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.
