Question

Help please?

Answer 1

@HawkCrimson

Answer 2

@satellite73

Answer 3

did i set this up correctly?
Option A = (4.95 / 12 ) to the 12th power
Option B = (4.85 / 4 ) to the 4th power
Option C = (4.895 / 365) to the 365th power

Answer 4

yeah we can compute the \(APY\)

Answer 5

going to need a calculator, i will use wolfram

Answer 6

\[(1+\frac{.0495}{12})^{12}\] for the first one, then subtract 1 from the answer

Answer 7

i get \(1.05064\)
subtract 1 get \(.05064\) which is pretty close to \(5\%\)
http://www.wolframalpha.com/input/?i=%281%2B \frac{.0495}{12}%29^{12}

Answer 8

how did you do that i got 2.05 ...

Answer 9

i typed it in, i cannot do it by hand

Answer 10

\[(1+\frac{.0495}{12})^{12}\] is for \(4.95\%\) compounded monthly

Answer 11

here it is nicer
http://www.wolframalpha.com/input/?i=%281%2B.0495%2F12%29^ {12}

Answer 12

0.495/12=.04125
+1
1.04125^12
1.624277293-1
0.624277

Answer 13

http://www.wolframalpha.com/input/?i=%281%2B.0495%2F12%29^12

Answer 14

where am i going wrong

Answer 15

oh i see, you decimal is in the wrong place

Answer 16

\(4.94\%=.0494\)

Answer 17

can you please show me step by step please

Answer 18

you were giving yourself \(49.5\%\) interest, which would be a good deal

Answer 19

sure

Answer 20

the general form for compounding \(n\) times per year is
\[A=P\times\left(1+\frac{r}{n}\right)^{ny}\] but you have to write \(r\) as a decimal, not as a percent

Answer 21

(1+.0495/12)^12 -1
=.0506386172
i got this now
can we just stick to this formula please this is the one im required to use?

Answer 22

in this case you have \(4.95\%\) and to turn the percent in to a decimal, move the decimal point two places to the left, making \(4.95\%=.0495\)

Answer 23

okay good, you got the right thing!

Answer 24

that is right?

Answer 25

the annual percentage yield is the part after the 1, namely the \(.0506\)

Answer 26

which is \(5\%\) about, so that is probably the right answer, although we could check another one

Answer 27

\[\left(1+\frac{.0484}{4}\right)^4-1\] for the next one

Answer 28

Did I set this up correctly?
Option A = (4.95 / 12 ) to the 12th power
Option B = (4.85 / 4 ) to the 4th power
Option C = (4.895 / 365) to the 365th power

No.

Closer (scaling the interest rates)

Option A = (0.0495 / 12 ) to the 12th power
Option B = (0.0485 / 4 ) to the 4th power
Option C = (0.04895 / 365) to the 365th power

Closer still. (Compound, not Simple Interest!)

Option A: (1 + 0.0495 / 12 ) to the 12th power
Option B: (1 + 0.0485 / 4 ) to the 4th power
Option C: (1 + 0.04895 / 365) to the 365th power

You could use more compact notation

Option A: (1 + 0.0495 / 12 )^12
Option B: (1 + 0.0485 / 4 )^4
Option C: (1 + 0.04895 / 365)^365

Finally

Option A: (1 + 0.0495 / 12 )^12 - 1
Option B: (1 + 0.0485 / 4 )^4 - 1
Option C: (1 + 0.04895 / 365)^365 - 1

Answer 29

that was wrong, i meant
\[\left(1+\frac{.0485}{4}\right)^4-1\]

Answer 30

looks like that one doesn't quite give \(5\%\)
http://www.wolframalpha.com/input/?i=%281%2B.0485%2F4%29^4-1

Answer 31

. Options A and B only

• Option B only

• Options A and C only

• Option C only

Answer 32

we have A and not B, lets try C
\[\left(1+\frac{.04895}{365}\right)^{365}-1\]

Answer 33

http://www.wolframalpha.com/input/?i=%281%2B.04895%2F365%29^365-1
looks like C works too

Answer 34

so A and C only

Answer 35

thanks do you think thats right as well @tkhunny

Answer 36

You don't need me to 2nd guess satellite73. I only jumped in so you would see the solution in your own handwriting. A&C!

Answer 37

i could certainly be wrong, but it i entered it correctly in wolfram, then A and C is correct