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.)

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 · Answer

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 · Answer

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 · Answer

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 · Answer

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 · Answer

http://www.jiskha.com/display.cgi?id=1372858589