Answer: 5.1%
Explanation:
The formula for calculating the effective annual yield when the interest is compounded semiannually is given by:
(1 + (r/n))^n - 1
where r is the annual interest rate and n is the number of times the interest is compounded in a year.
In this case, r = 5% and n = 2 (since the interest is compounded semiannually). Substituting these values into the formula, we get:
(1 + (0.05/2))^2 - 1
= (1.025)^2 - 1
= 1.050625 - 1
= 0.050625
Multiplying this value by 100 gives the effective annual yield as a percentage:
0.050625 x 100 = 5.0625%
Rounding this to the nearest tenth of a percent, we get:
Effective annual yield = 5.1%
Therefore, the effective annual yield for the given savings account, rounded to the nearest tenth of a percent, is 5.1%.