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Find the annual yield as a percentage for money invested at an annual rate of 4.62% compounded monthly.

a) 4.62%
b) 4.68%
c) 4.75%
d) 4.80%

1 Answer

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Final answer:

To find the annual yield as a percentage for money invested at an annual rate of 4.62% compounded monthly, we can use the formula for compound interest.

Step-by-step explanation:

To find the annual yield as a percentage for money invested at an annual rate of 4.62% compounded monthly, we can use the formula for compound interest:

Annual Yield = (1 + (Interest Rate / Number of Compounding Periods)) ^ Number of Compounding Periods - 1

Plugging in the values, we have:

Annual Yield = (1 + (0.0462 / 12))^12 - 1

Annual Yield = 0.0480 or 4.80%

Therefore, the correct answer is d) 4.80%.

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