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8 March, 02:42

Joel takes out a loan with a stated rate of 11.85% interest. If the interest is calculated weekly, how much greater is Joel's effective rate than his stated rate?

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  1. 8 March, 05:14
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    Effective interest rate is

    R = ((1+0.1185:52) ^ (52) - 1) * 100=12.57%

    How much greater

    12.57-11.85=0.72%
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