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

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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) About Me  (Show Source):
You can put this solution on YOUR website!
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The First National Bank is offering a 5 year certificate of deposit (CD) at 4% highlight%28annual%29 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.
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    APY = %281%2B0.04%2F4%29%5E4+-+1 = 1.01%5E4-1 = 0.040604 = 4.06% (rounded).     ANSWER

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


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    - ALGEBRA-I - YOUR ONLINE TEXTBOOK.

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


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Free of charge online textbook in ALGEBRA-I
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