SOLUTION: If the APR of a savings account is 7.2% and interest is compounded monthly, what is the approximate APY of the account?

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Question 613285: If the APR of a savings account is 7.2% and interest is compounded monthly, what is the approximate APY of the account?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi, 

APR of a savings account is 7.2% and interest is compounded monthly

APY  = %281%2B.072%2F12%29%5E12+-+1 = .0744 OR 7.44%