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F. Naz
F. Naz, B.Com
Category: Single Problem
Satisfied Customers: 5325
Experience:  Have completed B.Com and CA Finalist
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Interest at x% pa is added to £y WEEKLY and compounded.

Customer Question

Interest at x% pa is added to £y WEEKLY and compounded. Is the weekly interest x% pa divided by 52?
Submitted: 1 year ago.
Category: Single Problem
Expert:  F. Naz replied 1 year ago.


Customer: replied 1 year ago.
you're saying that an annual rate of 6.5% is 0.125% weekly? If you are, either you're wrong or the UK Government is wrong! They state that 6.5% pa is 0.1212% pw. And I've just realised that the reason for the difference is that 7 x 52 = 364. There are 365 days in a year - in fact 365.25 accounting for leap years.
I didn't ask for an approximate weekly rate. My calculation covers a period of 10 years at interest rates between 0.5% and 5.75% (bank base rate) so approximately won't do. Jennie
Customer: replied 1 year ago.
Expert:  F. Naz replied 1 year ago.


Expert:  F. Naz replied 1 year ago.

I am sending you the excel sheet which showing the rate calculated as needed by you, now you can find many rates by just chnages the bank base rate for 0.5% use 1.005 and for 5.75% use 1.0575

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