Question

Matilda deposited $16,100 into a savings account, and she didn't make any deposits or withdrawals for a year. If, after interest was paid for the year, Matilda's new balance was $16,731.12, what was the APY of the savings account?

Answer 1

R=i/pt
i=16731.12-16100=631.12
R=631.12/16,100×1
R=0.0392*100=3.92%

Answer 2

The APY would be 3.92%.

Explanation:

Given,

The initial amount in the account = $ 16,100,

Let r be the APY ( annual percentage yield ),

If any deposit and withdraws were not made,

Then, the total amount after 1 year would be,

`A=16100(1+(r)/(100))`

According to the question,

`16100(1+(r)/(100))=16731.12`

`1+(r)/(100)=(16731.12)/(16100)`

`1+(r)/(100)=1.0392`

`(r)/(100)=0.0392`

`\implies r = 3.92\%`

Hence, the APY would be 3.92 %.