3.8% compounded daily ---> (1+.038/365)^365 = 1.038729
4.1% compounded monthly --> (1 + .041/12)^12 = 1.041779
4.5% compounded quarterly --> (1 + .045/4)^4 = 1.045765
compare the annual percentage yield for three banks. Bank 1 offers an APR of 3.8% compounded daily; bank 2 offers an APR of 4.1% compounded monthly; bank 3 offers an APR of 4.5% compounded quarterly
2 answers
Find the annual percentage yield (APY) in the following situation.
A bank offers an APR of 3.8% compounded daily.
A bank offers an APR of 3.8% compounded daily.
1 answer