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

matc 
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 %
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