Question

if then APR of an savings account is 7.2% and is compounded monthly what is the approximate APY of the account

Answer 1

APY=(1+p)^(n)-1

Answer 2

\[\left(1+\frac{.072}{12}\right)^{12}-1\]

Answer 3

p= 0.072/12 n=1

Answer 4

not getting the right answer the choices are

A.1.07% B.7.44% C.10.74% D.6%

Answer 5

will it be 7.44?

Answer 6

seems reasonable
http://www.wolframalpha.com/input/?i=%281%2B.072%2F12%29^%2812%29-1