Question

HELP
Elizabeth opened a credit card at a department store with an APR of 17.71% compounded quarterly. What is the APY on this credit card?

Answer 1

@jim_thompson5910

Answer 2

use this formula

APY = [ (1+r/n)^n ] - 1

in this case

r = 0.1771
n = 4 (compounding 4 times a year)

Answer 3

got it from here

http://en.wikipedia.org/wiki/Annual_percentage_yield

Answer 4

im still lost

Answer 5

you just plug in what's given to get

APY = [ (1+0.1771/4)^4 ] -1

APY = ???

Answer 6

one sec

Answer 7

k

Answer 8

im wrong

Answer 9

what did you get

Answer 10

i got .18921266

Answer 11

so that's an 18.92% APY

Answer 12

which would be 18.92%

Answer 13

yeah, that's wrong?

Answer 14

oh wait thats right...awk

Answer 15

lol...that's ok

Answer 16

thanks ONCE AGAIN!!!

Answer 17

sure thing