What annual interest rate is required for a debt to grow by 33.9% in 411 weeks...

Question

Question

What annual interest rate is required for a debt to grow by 33.9% in 411 weeks if interest compounds weekly?

Answer 1

Answer #1

Present value = Future value/(1+i)^n

i = interest rate per period

n= number of periods

let current debt be 100

=>

100 = 133.9/(1+i/52)^411

=>

annual interest rate i = 3.70%

Answer 2

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