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Express your amswer as a percentage rounded to the hundreths.

Express your amswer as a percentage rounded to the hundreths.-example-1
User Geneva
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1 Answer

20 votes
20 votes

In order to calculate the APY, let's use the value of r = 0.03 (interest rate) and the value of n = 12 (since the interest is compounded monthly, that is, 12 times a year), so we have:


\begin{gathered} \text{APY}=(1+(0.03)/(12))^(12)-1 \\ \text{APY}=(1.0025)^(12)-1 \\ \text{APY}=1.0304-1 \\ \text{APY}=0.0304=3.04\text{\%} \end{gathered}

User Hedam
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