What are APR *and* APY rates of investment X that earns 0.2% per week, compounded weekly?

 You can invest (that is, 'lend') for one year either at the rate X described above, or, alternatively, at the rate Y that offers the risk premium of 6.5% above today's value of 1-year U.S. Treasury rate. If you consider both investments equally risky - would you invest in X or Y? Why?

Answer rating: 100% (QA)

To calculate the APR Annual Percentage Rate and APY Annual Percentage Yield of investment X we need ... View the full answer