Question

Calvin deposited 12,600 into a savings account, and he didn't make any deposits or withdrawls for the year. If after interest was paid for the year, Calvins new balance was $13,246, what was the APY of the savings account?

Answer 1

646$ well that is my answer

Answer 2

Hi there:)

A=p (1+rt)
A future value 13246
P principle 12600
t time 1 year
R interest rate ?
To solve for r
R= (( A/p)-1)/t
R=(13,246÷12,600)−1
R=0.0513×100=5.13%

Hope it helps