Question

Compute the amount of compound interest earned in 1 year for an investment of $1,000,000 with a nominal interest rate of 8% compounded quarterly. Then Compute the Annual Percentage Yield (APY) for the investment in the previous question. (Round APY to the nearest hundredths of a percent.)
Writeacher
Please don't post more of these without going back and indicating what YOU THINK about each one ... or what YOUR specific QUESTION is about each one.
Trish
I have been trying to figure out the problems I am posting but I don't understand how to solve them. I don't want just the answers I really want to understand how to solve them. I apologize for not asking a question I am not familiar with how this works. I was not dumping my homework.
Writeacher
OK ... but it will help our math tutors if you give them some idea of what you do and don't understand about each one.
Trish
I have tried to use what I thought was the right equations to solve the problems. But I am just absolutely lost when it comes to compound interest, solving for Annual Percentage Yield, and present value.
Ms. Sue
http://www.jiskha.com/display.cgi?id=1372858589