Question

Lloyd deposited $14300 into a savings account, and he didn't make any deposits or withdrawals for a year. If, after interest was paid for the year, Lloyd's new balance was $14880.58, what was the APY of the savings account?

Answer 1

4.06%

Explanation:

Answer 2

4.06%

Explanation:

To solve for the APY of Lloyd, we use the formula:

`R=(I)/(Pt)`

Since we don't know what the Interest earned is yet, we simply solve for the difference of the new balance and the old balance.

Interest Earned = $14880.58 - $14300

Interest Earned = $580.58

Now let's break down the values we have.

P = 14300

I = 580.58

t = 1

Now let's plug it into our formula.

`R=(580.58)/(14300*1)`

`R=(580.58)/(14300)`

`R=0.0406`or 4.06%