Question 1172744
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The First National Bank is offering a 5 year certificate of deposit (CD) at 4% {{{highlight(annual)}}} 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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<pre>
    APY = {{{(1+0.04/4)^4 - 1}}} = {{{1.01^4-1}}} = 0.040604 = 4.06% (rounded).     <U>ANSWER</U> 
</pre>

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See the lesson

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/logarithm/Problems-on-discretely-compound-accounts.lesson>Problems on discretely compound accounts</A> 

in this site, &nbsp;and learn the subject from there.



After reading this lesson, you will tackle such problems on your own without asking for help from outside.


Also, &nbsp;you have this free of charge online textbook in ALGEBRA-I in this site

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson>ALGEBRA-I - YOUR ONLINE TEXTBOOK</A>.


The referred lesson is the part of this online textbook under the topic "<U>Logarithms</U>".



Save the link to this online textbook together with its description


Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson


to your archive and use it when it is needed.



Happy learning (!)