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What's the annual percentage yield for money invested at the rate of 3.2% compounded continuously?

Answer:__________ %

Convert your answer into a percentage. Round your answer to 2 decimal places.

1 Answer

6 votes

Answer:

The Annual percentage yield is 3.25%.

Explanation:

Given : Money invested at the rate of 3.2% compounded continuously.

To find : What's the annual percentage yield?

Solution :

Money invested at the rate of 3.2% compounded continuously.

The compounded continuously formula is


A=Pe^(rt)

Where, P is the principal P=1

t is the time t=1

r is the interest rate r=3.2%=0.032

Substitute the value in the formula,


A=Pe^(rt)


A=1* e^(0.032)


A=1.0325

The Annual percentage yield is


APY=(A-1)* 100


APY=(1.0325-1)* 100


APY=0.0325* 100


APY=3.25\%

Therefore, The Annual percentage yield is 3.25%.

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