56.1k views
5 votes
Marijn's account has an annual interest rate of 3.9% compounded monthly.What is the annual percentage yield for Marijn's account?

User JakeHova
by
8.0k points

1 Answer

4 votes

Given:

Interest rate = 3.9% compounded monthly.

The annual percentage yield is calculated as,


\begin{gathered} \text{APY}=(1+(r)/(n))^n-1 \\ \text{APY}=(1+(3.9)/(100*12))^(12)-1 \\ \text{APY}=(1.003325)^(12)-1 \\ \text{APY}=0.0397 \\ \text{APY}=3.97\text{ \%} \end{gathered}

Answer: annual percentage yield is 3.97 %

User Pyfork
by
9.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories