DSC1630
Assignment 2
Semester 2 2025
Due Year 2025
, Student Name: DSC1630 Assignment 2
DSC1630 Assignment 2
Due: Year 2025
Question 1
Problem Statement: Determine the equivalent weekly compounded interest rate (to
two decimal places) of an interest rate of 14.90% per year, compounded quarterly.
Step 1 — Formula
We are given a nominal annual rate convertible quarterly:
j (4) = 14.90% = 0.1490.
First find the effective annual rate:
4
j (4)
1 + ieff = 1+ .
4
Then find the equivalent nominal annual rate convertible weekly:
52
j (52)
1+ = 1 + ieff .
52
Thus,
1
(52)
j = 52 (1 + ieff ) 52 −1 .
Step 2 — Compute
Quarterly rate:
0.1490
iq = = 0.03725.
4
1 + ieff = (1.03725)4 ≈ 1.157534 ⇒ ieff ≈ 0.157534.
Step 3 — Weekly Equivalent
iweek = (1.157534)1/52 − 1 ≈ 0.002817.
j (52) = 52 × 0.002817 ≈ 0.146498.
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Assignment 2
Semester 2 2025
Due Year 2025
, Student Name: DSC1630 Assignment 2
DSC1630 Assignment 2
Due: Year 2025
Question 1
Problem Statement: Determine the equivalent weekly compounded interest rate (to
two decimal places) of an interest rate of 14.90% per year, compounded quarterly.
Step 1 — Formula
We are given a nominal annual rate convertible quarterly:
j (4) = 14.90% = 0.1490.
First find the effective annual rate:
4
j (4)
1 + ieff = 1+ .
4
Then find the equivalent nominal annual rate convertible weekly:
52
j (52)
1+ = 1 + ieff .
52
Thus,
1
(52)
j = 52 (1 + ieff ) 52 −1 .
Step 2 — Compute
Quarterly rate:
0.1490
iq = = 0.03725.
4
1 + ieff = (1.03725)4 ≈ 1.157534 ⇒ ieff ≈ 0.157534.
Step 3 — Weekly Equivalent
iweek = (1.157534)1/52 − 1 ≈ 0.002817.
j (52) = 52 × 0.002817 ≈ 0.146498.
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