Question

The APR of Estell's savings account is 4.5%, but interest is compounded only once a year. What is they APY of Estell's savings account?
A. Greater than 4.5%
B. Greater than 1% but less than 4.5%
C. 1%
D. 4.5%

Answer 1

Gimme a sec

Answer 2

kk thanks :)

Answer 3

\[APY = (1+\frac{ r }{ n })^{n}-1 \]

r =stated annual interest
n = number of times compounded

Answer 4

Plug in and solve

Answer 5

So would it be APY = (1+4.5/1)^1-1 ?

Answer 6

My bad, you need to move the decimal place of the interest to the left 2 times. = .045

Answer 7

Answer is 4.5 correct?

Answer 8

and yes 4.5 is the correct answer

Answer 9

Oh ok, thanks ! :)

Answer 10

yw

Answer 11

Can you help me out with 2 other problems i have please?