Problema Solution
suppose that your savings account earns interest at an APR rate of 6.7%, compounded quarterly. determine that annual percentage yield to the nearest hundredth of a percent
Answer provided by our tutors
let
r = 0.067 or 6.7% annual percentage rate
m = 4 the number of compounding periods per year (compounded quarterly)
APY = (1 + r/m)^m - 1
APY = (1 + 0.067/4)^4 - 1
APY = 0.0687 or 6.87%
click here to see the step by step calculation:
the annual percentage yield to the nearest hundredth of a percent is 6.87%