Wednesday

March 4, 2015

March 4, 2015

Posted by **marie** on Sunday, August 14, 2011 at 5:47pm.

you deposit $12,000 in an account that pays 6.5% interest compounded quarterly.

A. find the future value after one year?

B. Use the future value formula for simple interest to determine the effective annual yield?

- math -
**Henry**, Sunday, August 14, 2011 at 8:29pmA. Pt = Po(1+r)^n,

r = 6.5% / 4 = 1.625% = 0.01625 = Quarterly % rate expressed as adecimal.

n = 4 comp./yr * 1 yr = 4 compounding

periods.

Pt = 12,000(1.01625)^4 = $12,799.22.

B. APY = I/Po.

I=Pt - Po = 12,799.22 - 12,000 = 799.22

= Interest.

APY=(799.22/12000)*100% = 6.66%.=Annual

Percentage Yield.

- math -
**Henry**, Sunday, August 14, 2011 at 8:39pmFormula: APY = (Pt-Po) / Po

**Answer this Question**

**Related Questions**

Help math calc - Find the future value of $700 deposited at 3% for 9 years if ...

math - what formulas do i use for this: Investments Suppose $10,000 is invested ...

Math - Find how much must be deposited now (present value) at % simple interest ...

math - Rob has a balance of 1695$ in his bank account The account pays 2.9% ...

Fins nance business - 1. Find the future value of current $1,000 5 year from ...

Math-- Desperate for help! - Find the amount in an account if $2000 is invested ...

Math - Find the future value of $800 deposited at 5% for 2 years if the account ...

Algebra - Show how you substitute the values into the formula, then use your ...

Compound math - (Future Value) Suppose you invest $8000 into an account that ...

math - Interest is calculated with the following formula I=Prt What is the ...