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May 13th, 2015, 10:11 AM   #1
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Weekly interest compounded Monthly

I have gone blank, please help:
A loan attracts interest at 1.25% per week, compounded monthly. What is the effective interest rate per annum taking into account the compounding effect? Whats the Excel Function that does this? Thanks!!
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May 13th, 2015, 08:22 PM   #2
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Quote:
Originally Posted by mhlevenstein View Post
I have gone blank, please help:
A loan attracts interest at 1.25% per week, compounded monthly. What is the effective interest rate per annum taking into account the compounding effect? Whats the Excel Function that does this? Thanks!!
Interest feature is unclear...badly worded...
1.25% per week means 52 * 1.25 = 65% : improbable.

Please provide an example showing when payments are made,
and when interest is added to the principal.
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