Weekly compounding
The week-based periods Weekly, Biweekly, and 4-Week are quite straightforward since all weeks are the same length. They function in much the same way as month-based periods. The Periodic Rate is determined by dividing the Nominal Annual Rate by the number of periods in a year.
|
Compound Period |
Period length |
Compounding occurs |
|
Weekly |
1/52 of year |
52 times/year (every week) |
|
Biweekly |
1/26 of year |
26 times/year (every other week) |
|
4-week |
1/13 of year |
13 times/year (every fourth week) |