1. What is Weekly Compound Interest?

Weekly compound interest calculates the growth of an investment or loan where interest is compounded weekly and contributions are made weekly. This frequency leads to faster growth compared to monthly or annual compounding.

2. How Does the Calculator Work?

The calculator uses the weekly compound interest formula:

Where:

• \( A \) — Future value of the investment (USD)
• \( PMT \) — Weekly payment amount (USD)
• \( r \) — Annual interest rate (decimal)
• \( t \) — Time in years
• 52 — Number of weeks in a year

Explanation: The formula accounts for weekly contributions and weekly compounding, which results in more frequent growth compared to monthly or annual compounding.

3. Importance of Weekly Compounding

Details: Weekly compounding can significantly increase investment returns over time compared to less frequent compounding periods, especially for long-term investments.

4. Using the Calculator

Tips: Enter weekly payment amount in USD, annual interest rate as a percentage, and time in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does weekly compounding compare to daily or monthly?
A: Weekly compounding falls between daily and monthly in terms of frequency. More frequent compounding generally yields higher returns.

Q2: What's the difference between this and simple interest?
A: Compound interest earns interest on both principal and accumulated interest, while simple interest only earns on the principal.

Q3: Can I use this for loan calculations?
A: Yes, the same formula applies to loans with weekly payments and compounding.

Q4: How accurate is this calculator?
A: It provides mathematical projections but doesn't account for market fluctuations, fees, or taxes.

Q5: What if I want to include an initial investment?
A: You would need to add a separate term for the initial investment's growth: \( A = P(1 + r/52)^{52t} + PMT \times \left(\frac{(1 + r/52)^{52t} - 1}{r/52}\right) \)