Answer:
2239%
Explanation:
The compound annual can be determined by converting this 12.5% in two weeks to an effective annual rate as below:
Effective annual rate=(1+12.5%/2)^52-1
By dividing by 2 we are reducing 12.5% to a weekly rate
By raising to the power of 52, we are expressing the weekly rate in annual terms.
Effective annual rate=(1+12.5%/2)^52-1=(1.0625 )^52-1
Effective annual rate=23.39401767 -1=2239%
