Asked by vickie
Al invests $5,500, at 6% interest, compounded monthly for one year. Calculate the annual percentage yield for his investment.
Answers
Answered by
Reiny
The $5,500 is irrelevant, all you want is the annual rate equivalent to 6% per annum, compounded monthly
let that annual rate be i
1+i = (1 + .06/12)^12
1+i = 1.005^12 = appr 1.06168
the equivalent annual rate is 6.168 %
let that annual rate be i
1+i = (1 + .06/12)^12
1+i = 1.005^12 = appr 1.06168
the equivalent annual rate is 6.168 %
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.