- #1

mathdad

- 1,283

- 1

My Effort:

Note: 20 weeks = 20/52 or 5/13 of a year.

Let E = effective rate of interest

E = [1 + (r/m)]^m - 1 where r is the nominal (annual ) advertised rate; m is the number of compounding periods/year.

Let r = 0.0275

Let m = 5/13

1. Is this the correct formula?

2. If so, is my value for r and m correct?