matc

posted by .

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

  • matc -

    The $5,500 is irrelevant, all you want is the annual rate equivalent to 6% per annum, compounded monthly

    let that annual rate be i
    1+i = (1 + .06/12)^12
    1+i = 1.005^12 = appr 1.06168

    the equivalent annual rate is 6.168 %

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Maths

    Determine the effective annual yield (annual percentage yield) for $1 invested for 1 year at 8.5% compounded monthly.
  2. finance

    14. Assume Julian has a choice between two deposit accounts. Account A has an annual percentage rate of 7.55 percent but with interest compounded monthly. Account B has an annual percentage rate of 7.45 percent with interest compounded …
  3. Business Math

    What is the annual percentage yield of a $10,000 investment for 1 year at 12% interest compounded monthly?
  4. 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. …
  5. 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. …
  6. math

    Brianna invests $3,500, at 12% interest, compounded quarterly for 1 year. Manually calculate the compound interest for this investment.
  7. math

    Anny invests $3,000, at 6% interest, compounded monthly for 1 year. Use Table 11-1 to calculate the compound amount for her investment.
  8. business math

    Anny invests $3,000, at 6% interest, compounded monthly for 1 year. Use Table 11-1 to calculate the compound amount for her investment
  9. 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?
  10. 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?

More Similar Questions