Question

The savings account offering which of these APRs and compounding periods offers the best APY?

a) 3.1196% compounded semiannually
b) 3.1184% compounded quarterly
c) 3.1095% compounded daily
d) 3.1172% compounded monthly
PLEASE HELPPP!!!!

Answer 1

a)


`\bf \qquad \qquad \textit{Annual Yield Formula} \\\\ \left. \qquad \qquad\right. \left(1+(r)/(n)\right)^(n)-1 \\\\ \begin{cases} r=rate\to 3.1196\%\to (3.1196)/(100)\to &0.031196\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{semi-annually, thus twice} \end{array}\to &2 \end{cases} \\\\\\ \left. \qquad \qquad\right. \left(1+(0.031196)/(2)\right)^(2)-1`

b)


`\bf \qquad \qquad \textit{Annual Yield Formula} \\\\ \left. \qquad \qquad\right. \left(1+(r)/(n)\right)^(n)-1 \\\\ \begin{cases} r=rate\to 3.1184\%\to (3.1184)/(100)\to &0.031184\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four times} \end{array}\to &4 \end{cases} \\\\\\ \left. \qquad \qquad\right. \left(1+(0.031184)/(4)\right)^(4)-1`

c)


`\bf \qquad \qquad \textit{Annual Yield Formula} \\\\ \left. \qquad \qquad\right. \left(1+(r)/(n)\right)^(n)-1 \\\\ \begin{cases} r=rate\to 3.1095\%\to (3.1095)/(100)\to &0.031095\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{daily, assuming 365 days} \end{array}\to &365 \end{cases} \\\\\\ \left. \qquad \qquad\right. \left(1+(0.031095)/(365)\right)^(365)-1`

d)


`\bf \qquad \qquad \textit{Annual Yield Formula} \\\\ \left. \qquad \qquad\right. \left(1+(r)/(n)\right)^(n)-1 \\\\ \begin{cases} r=rate\to 3.1172\%\to (3.1172)/(100)\to &0.031172\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve times} \end{array}\to &12 \end{cases} \\\\\\ \left. \qquad \qquad\right. \left(1+(0.031172)/(12)\right)^(12)-1`

Answer 2

i just took the apex quiz its 3.1172%