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

Reiny
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
Similar Questions

Maths
Determine the effective annual yield (annual percentage yield) for $1 invested for 1 year at 8.5% compounded monthly. 
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 … 
Business Math
What is the annual percentage yield of a $10,000 investment for 1 year at 12% interest compounded monthly? 
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. … 
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. … 
math
Brianna invests $3,500, at 12% interest, compounded quarterly for 1 year. Manually calculate the compound interest for this investment. 
math
Anny invests $3,000, at 6% interest, compounded monthly for 1 year. Use Table 111 to calculate the compound amount for her investment. 
business math
Anny invests $3,000, at 6% interest, compounded monthly for 1 year. Use Table 111 to calculate the compound amount for her investment 
Math
May Wattson has 50000 to invest in a 4year 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? 
MATH HELP
May Wattson has 50000 to invest in a 4year 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?