Post a New Question

math

posted by on .

Imagine a local bank representative is assisting you with establishing an account. The account you two are discussing has an APR of 6.5%. Determine the APY with quarterly compounding and with monthly compounding. How does changing the compounding period affect the annual yield?

  • math - ,

    say $100 apr 6.5 simple = 6.50%

    at 6.5 quarterly
    (.065/4 +1)^4 = 1.0667 so 6.67 %

    at 6.5 monthly
    100 (.065/12 +1)^12 = 1.06697 so 6.70%

  • math - ,

    uncomplete need to know APY after find the value of A

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question