Business Math

posted by .

What is the annual percentage yield of a $10,000 investment for 1 year at 12% interest compounded monthly? (Round APY to the nearest hundredth.)

  • Business Math -

    amount = 10000(1 + .12/12)^12 = 11268.25

    so interest earned = 1268.25
    rate of return = 1268.25/10000 = .1268 or appr 12.68%

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    Find the effective rate corresponding to the given nominal rate. (Round your answer to the nearest hundredth of a percentage point.) (a) 7%/year, compounded daily % (b) 6%/year, compounded monthly %
  2. Business Math

    Compute the Annual Percentage Yield (APY) for the investment in the previous question. (Round APY to the nearest hundredths of a percent.)
  3. contemporary math

    Compute the amount of compound interest earned in 1 year for an investment of $1,000,000 with a nominal interest rate of 8% compounded quarterly. Then Compute the Annual Percentage Yield (APY) for the investment in the previous question. …
  4. business math

    . Compute the amount of compound interest earned in 1 year for an investment of $1,000,000 with a nominal interest rate of 8% compounded quarterly. Compute the Annual Percentage Yield (APY) for the investment in the previous question. …
  5. Math

    Compute the Annual Percentage Yield (APY) for the investment in the previous question. (Round APY to the nearest hundredths of a percent.)
  6. math

    1. You want to invest $10,000 dollars. How long will it take to double your investment at an annual interest rate of 10%, compounded continuously?
  7. Math

    May Wattson has 50000 to invest in a 4-year certificate of deposit that earns an interest rate of 3.75% compounded monthly or 3.50% compounded daily. Based on annual yield which is the better investment?
  8. MATH HELP

    May Wattson has 50000 to invest in a 4-year certificate of deposit that earns an interest rate of 3.75% compounded monthly or 3.50% compounded daily. Based on annual yield which is the better investment?
  9. matc

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

    Suppose you buy a two-year CD for $10,000 from First Command Bank. The interest earned at maturity is $______. Use the APY (Annual Percentage Yield) from Table 4.1. The Table says APY for this is 3.9%

More Similar Questions