SOLUTION: Find the Annual Percentage Yield (APY) for each of the following accounts.
A) Account with 5.7% interest compounded daily.
B) Account with 6.4% interest compounding continuousl
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-> SOLUTION: Find the Annual Percentage Yield (APY) for each of the following accounts.
A) Account with 5.7% interest compounded daily.
B) Account with 6.4% interest compounding continuousl
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Question 1075875: Find the Annual Percentage Yield (APY) for each of the following accounts.
A) Account with 5.7% interest compounded daily.
B) Account with 6.4% interest compounding continuously. Answer by jorel1380(3719) (Show Source):
You can put this solution on YOUR website! A) The effective yield of 5.7% compounded daily is:
((1+(0.057/365)^365))-1=1.0586510991530003815933633257067-1=0.05865109915300038159336332570672, or
5.8651% APY
B)6.4% compounded continuously amounts to:
APY=(e^(.064x1))-1=1.0660923987615052436202020772267-1=0.06609239876150524362020207722674, or
6.609239876% annual yield. ☺☺☺☺
