Q. A client requires £100,000 one year from now. If the stated annual rate is 2.50% compounded weekly, the deposit needed today is closest to:
- £97,500.
- £97,532.
- £97,561.
https://gyazo.com/406ada74f40bc6225af132c0b0a56acc
Basicly I did this way and got the right answer, someone please tell me if it`s fine:
I found EAR first (1+0,025/48)48 -1 * 100
I assumed we have 48 weeks in a year because we usually have 4 weeks a month so 4*12 = 48
Got EAR = 2,5308431
I set the EAR as i
100.000 CHS FV
1 N
0 PMT
ask FV, got: £97.531,62753
which is second answer,
is it fine?