Question

help pleaseee

If the APR of a savings account is 6.4% and interest is compounded quarterly, what is the approximate APY of the account?

A. 6%
B. 6.56%
C. 10.49%
D. 1.05%

@sierraabel @John_ES

Answer 1

You should apply the formula,
\[APY=100((1+APR/\text{Periods})^{\text{Periods}}-1)\]In this case,
\[APY=100((1+0.064/4)^4-1)=6.56 \%\]

Answer 2

oooo thank you i was looking everywhere for that formula