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Rahela's account has an annual interest rate of 6.5% compounded semiannually. What is the annual percentage yield for Rahela's account?

User Dvlpr
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Answer: The annual percentage yield for Rahela's account can be calculated by finding the effective annual interest rate, which takes into account the frequency of compounding. The effective annual interest rate is calculated as follows:

Effective annual interest rate = (1 + (6.5/2))^2 - 1 = 6.6725%

So, the annual percentage yield for Rahela's account is 6.6725%.

Explanation:

User Psrag Anvesh
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