Question

What is the annual percentage yield of a $10,000 investment for 1 year at 12% interest compounded monthly? (Round APY to the nearest hundredth.)

Answer 1

amount = 10000(1 + .12/12)^12 = 11268.25

so interest earned = 1268.25
rate of return = 1268.25/10000 = .1268 or appr 12.68%