SOLUTION: A bank features a savings account that has an annual percentage rate of
3.2 % with interest compounded semi-annually. Constanza deposits $5,500 into the account.
What is the
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Question 1195615: A bank features a savings account that has an annual percentage rate of
3.2 % with interest compounded semi-annually. Constanza deposits $5,500 into the account.
What is the annual percentage yield (APY) for the savings account?
APY= ___ %. Round to the nearest hundredth of a percent.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
APY=(1+(r/n))^nt minus 1
=1.016^2-1, the 0.016 being half of the 3.2% to do semi-annually
0.032256 or 3.23%
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