Question 1149346
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It doesn't make sense to post a question like this and only tell us this answer is correct and this other answer is incorrect, without showing those answers.<br>
If you want help in understanding these problems, SHOW US your correct and incorrect answers so we know HOW we can help.<br>
The basics are quite simple if you know the vocabulary.<br>
Example: 6% compounded quarterly (4 times per year).<br>
APR: 6% = .06
quarterly interest rate: .06/4 = .015
quarterly growth factor: 1+.015 = 1.015
yearly growth factor: (1.015)^4 = 1.06136  to 5 decimal places
APY: 1.06136-1 = .06136 = 6.136%<br>