Roy deposits $7000. Determine the APY if there is an APR of 6.5% compounded quartely. Express your answer as a percentage rounded to the nearest hundredth of a percent, if necessary.
To find the APY, we can use the formula:
APY = (1 + (0.065/4))^4 - 1
APY = (1 + 0.01625)^4 - 1
APY = (1.01625)^4 - 1
APY = 1.066824717 - 1
APY = 0.066824717
Converting this to a percentage rounded to the nearest hundredth of a percent, we get:
APY ≈ 6.68%
Therefore, the APY is approximately 6.68%.