ABC Bank offers a savings account with 4.5% compounded quarterly. Find the APY the bank's savings account offers (round your answer to three decimal places).

9.353

To find the Annual Percentage Yield (APY), you can use the formula:

APY = (1 + r/n)^n - 1

Where:
r = annual interest rate (in decimal form)
n = number of compounding periods per year

In this case, the annual interest rate is 4.5%, which is equal to 0.045 in decimal form. The compounding is done quarterly, so there are 4 compounding periods in a year.

APY = (1 + 0.045/4)^4 - 1

Calculating this expression will give us the APY offered by the bank's savings account.

To find the APY (Annual Percentage Yield) that ABC Bank's savings account offers, we need to use the formula:

APY = (1 + (r/n))^n - 1

Where:
r = annual interest rate (in decimal form)
n = number of compounding periods per year

In this case, the annual interest rate is 4.5% or 0.045 (in decimal form), and it is compounded quarterly, so the compounding period is 4.

Let's substitute these values into the formula and calculate the APY:

APY = (1 + (0.045/4))^4 - 1
= (1 + 0.01125)^4 - 1
= (1.01125)^4 - 1
≈ 1.046033 - 1
≈ 0.046033

Rounding this to three decimal places, the APY that ABC Bank's savings account offers is approximately 0.046 or 4.603%.