Question

Rhett deposits $5000 . determine the apy if there is an apr of 4.5% compounded weekly. round your answer to the nearest hundredth of a percent, if necessary.

Answer 1

To determine the APY, we can use the formula: APY = (1 + interest rate/n)^n - 1. Plugging in the values, APY is approximately equal to 4.58%.

Step-by-step explanation:

To determine the APY, or Annual Percentage Yield, we can use the formula:

APY = (1 + interest rate/n)^n - 1

Where:

• Interest rate is the APR, or Annual Percentage Rate, which is 4.5% in this case.
• n is the number of times the interest is compounded per year, which is 52 (weekly compounded).

Plugging in the values, we have:

APY = (1 + 0.045/52)^52 - 1

Calculating this expression, APY is approximately equal to 4.58%.