SOLUTION: The First National Bank is offering a 5 year certificate of deposit (CD) at 4% interest compounded quarterly. (Round your answers to two decimal places.) What is the annual perc

Question 1172744: The First National Bank is offering a 5 year certificate of deposit (CD) at 4% interest compounded quarterly. (Round your answers to two decimal places.)
What is the annual percentage yield of each CD?
I got the compound amount, which is $8541.33.
I'm having trouble getting the APY. I got 22.02% which was wrong.
Answer by ikleyn(52781) (Show Source): You can put this solution on YOUR website!
.
The First National Bank is offering a 5 year certificate of deposit (CD) at 4% interest compounded quarterly.
(Round your answers to two decimal places.)
What is the annual percentage yield of each CD?
I got the compound amount, which is $8541.33.
I'm having trouble getting the APY. I got 22.02% which was wrong.
~~~~~~~~~~~~~~~~

    APY =  =  = 0.040604 = 4.06% (rounded).     ANSWER

----------------

See the lesson
- Problems on discretely compound accounts
in this site, and learn the subject from there.

After reading this lesson, you will tackle such problems on your own without asking for help from outside.

Also, you have this free of charge online textbook in ALGEBRA-I in this site
- ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lesson is the part of this online textbook under the topic "Logarithms".

Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.

Happy learning (!)

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