Question

Sydney possesses a credit card with an APR of 21.34% compounded daily. What is the APY on this credit card?

5.85%

23.78%

28.84%

47.56%

Answer 1

@tkhunny

Answer 2

5.85%

Answer 3

can you show me how you got that?

Answer 4

It's actually 23.78% sorry it's NOT 5.85%

Answer 5

Are you able to walk me through it? i know the formula

Answer 6

show me the formula

Answer 7

thanks Cj

Answer 8

welcome

Answer 9

Are you wanting me to show the work of the APY right

Answer 10

what's the interest rate of your question

Answer 11

thats all that there is up there^

Answer 12

what number is daily

Answer 13

365

Answer 14

what i tried was (1+.2134/365)^365 -1

Answer 15

no wait, i see what i did.... I took .2134/12=.0006 and plugged in (1+.0006)^365 -1

Answer 16

thats why i got it wrong but if i do (1+.2134/365)^365 -1 i get 23.78

Answer 17

r = rate of interest or stated rate
n = number of times per year that the interest is compounded

Answer 18

(1+.2134/365)^365 -1 i get 23.78 <---- this is correct dude?

Answer 19

you just have to notice KEY words in questions

Answer 20

@Cjones Does that help you? ***Use a APY or APR Calculator they have one on-line

Answer 21

We both got 23.78 and its an option i did it by using the formula and my calculator

Answer 22

so its what im going to go with

Thank you

Answer 23

sydney is poor

Answer 24

ummm.... ok?

Answer 25

just saying... only people with really bad debts get a creditcard rate like that

Answer 26

you're welcome for thehelp

Answer 27

@Cjones , fyi those options are really way off you could have gotten answer by educated guess
the APY will never be more than a few percent higher than given rate

Answer 28

Thanks for letting me know, ill keep that in mind for future questions. thanks guys

Answer 29

don't just take an educated guess, it's best to get the right answer, because sometimes shortcuts won't always work

Answer 30

be my fan when OpenStudy works good