Final answer:
The APY can be calculated using different formulas, depending on the compounding period. For 9% compounded monthly, the APY is 0.939%. For 11% compounded continuously, the APY is 11.674%.
Step-by-step explanation:
To calculate the APY (Annual Percentage Yield) for a given interest rate, we can use the formula:
APY = (1 + (rate / n))^n - 1
where 'rate' is the interest rate, and 'n' is the number of compounding periods per year.
(A) For 9% compounded monthly, the APY can be calculated as:
APY = (1 + (0.09 / 12))^12 - 1 = 0.00939 or 0.939%
(B) For 11% compounded continuously, the APY can be calculated using the formula:
APY = e^(rate) - 1
where 'e' is Euler's number (approximately 2.71828). So, the APY for 11% compounded continuously is:
APY = e^(0.11) - 1 = 0.11674 or 11.674%