Al invests $5,500, at 6% interest, compounded monthly for one year. Calculate the annual percentage yield for his investment.

Answer 1

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 %