Question

HELP !

Brandon opened a credit card at a department store with an APR of 14.99% compounded monthly. What is the APY on this credit card?

1.25%

29.98%

19.55%

16.06%

Answer 1

\[(1+\frac{apr}{12})^{12}=1+apy\]

Answer 2

APR is a compounding interest

APY is the simple interest that would have amounted to the same ....

Answer 3

(1+14.99%/12)1+14.99 <<< ?
Did I set it up right ?

Answer 4

almost, lets convert the % to its decimal ....

(1+.1499/12)^(12) = 1 + apy

Answer 5

(1+0.1499/12)1+apy ?

Answer 6

thats looking better, but your posts are not actually formatting the same as mine ....

(1+0.1499/12)^(12) = 1+apy

\[(1+\frac{0.1499}{12})^{12} = 1+apy \]

Answer 7

oh ! :D what is apy ?

Answer 8

"What is the APY on this credit card?"

apy is the ... well ... apy that you are trying to determine.

A nnual
P ercentage
Y ield

Answer 9

I got this (1.0124916667)^12=1+apy

Answer 10

so far so good

Answer 11

im stuck on (1.0124916667)^12=1+apy I dont know what else to do :c

Answer 12

work up the power of 12 ...

Answer 13

(1.0124916667)^12

your calculator should have a "^" key, and some "(", ")" keys

Answer 14

if its the windows basic calculator, there should an \(X^y\) option

Answer 15

Its gave me 1.6063988....

Answer 16

thats incorrect, you prolly hit a wrong key

Answer 17

(1.01249)^12 = 1.1606169 .....

Answer 18

1.1606169 = 1 + apy

subtract 1 from each side and convert to %

Answer 19

I GOT ITTT !! :D 16.06%

Answer 20

correct :)

Answer 21

Thank you soo much ! I really was lost !

Answer 22

you did fine, good luck ;)