Asked by Jill
The Orange County Teachers' Credit Corp. offers an account which pays 14% compounded quarterly. What is its effective rate of yield?
Answers
Answered by
Henry
APY =((1+r)^n - 1)*100%,
r=14% / 4 = 3.50% = 0.0350 = Quarterly
% rate expressed as a decimal.
n = 4 comp/yr * 1yr = 4 compounding
periods.
APY = ((1.0350)^4 - 1)*100% = 14.75% = Annual Percentage Yield.
Int = 1.1475 - 1.00 = 0.1475,
r=14% / 4 = 3.50% = 0.0350 = Quarterly
% rate expressed as a decimal.
n = 4 comp/yr * 1yr = 4 compounding
periods.
APY = ((1.0350)^4 - 1)*100% = 14.75% = Annual Percentage Yield.
Int = 1.1475 - 1.00 = 0.1475,
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.