SOLUTION: For each of the following accounts, give the growth factor per compounding period, then give the annual growth factor and the annual percent change (APY).
Account A has a 5% APR
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-> SOLUTION: For each of the following accounts, give the growth factor per compounding period, then give the annual growth factor and the annual percent change (APY).
Account A has a 5% APR
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Question 1149346: For each of the following accounts, give the growth factor per compounding period, then give the annual growth factor and the annual percent change (APY).
Account A has a 5% APR compounded monthly.
Monthly growth factor: Correct
Annual growth factor: Correct
APY: Incorrect %
Account B has a 3.2% APR compounded daily. Assume there are 365 days in the year.
Daily growth factor: Incorrect
Annual growth factor: Incorrect
APY: Incorrect %
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The basics are quite simple if you know the vocabulary.
Example: 6% compounded quarterly (4 times per year).
