I will give medal if someone can help!
if the annual percent yield is 1.260% and the interest rate is 1.250% and the minimum investment is 1,000$ ... what would be a good function?

Question

I will give medal if someone can help!
if the annual percent yield is 1.260%  and the interest rate is 1.250% and the minimum investment is 1,000$ ... what would be a good function?

anonymous · Answer

A good function to represent your situation?

anonymous · Answer

yes.. i don't know if i'm supposed to use the annual percent yield or not though, it didn't say.

anonymous · Answer

And, how do they define APY? (There are actually a lot of different ways to calculate interest rates...)

anonymous · Answer

they didn't really define it, the question said this: 1. Research the highest interest rate (APY—annual percent yield) for 2-year and 5-year CD's. Document the company's name, interest rate, and minimum investment. The minimum investment must be less than or equal to $5,000.... SO I did now they want me to come up with a function for the 2yr and 5yr

anonymous · Answer

Do you remember how to calculate compound interest?

anonymous · Answer

no.. :/

anonymous · Answer

Here's the formula. Remember, the interest rate is written in decimal notation (not as a percent):

$$(1 + r)^{n}$$
So, for instance, if you have an interest rate of 6% and are saving for ten years, you have:

$$(1 + 0.06)^{10} = 1.06^{10} \approx 1.7908$$
Which means if you invest $10,000 at that rate, at the end of ten years you'll have about $17,908

anonymous · Answer

Are you still with me?