Question

Use the formula for continuous compounding to compute the balance in the account find the APY for the account. $4,000 deposit in an account with an APR of 8%.   (Round to the nearest cent as needed.)

Answer 1

Given:

​$4,000 deposit in an account with an APR of ​8%.

Required:

We need to find APY with APR 8%

so

`x=8\%`

Step-by-step explanation:

Here we find for 1 year

take n=1 in

`4000*e^{1*(8)/(100)}=4333.15`

Now to find ARP

`\begin{gathered} 4000(1+(x)/(100))=4333.15 \\ \\ 1+(x)/(100)=1.08328 \\ \\ (x)/(100)=0.08328 \\ \\ x=8.328 \\ x\approx8.33\% \end{gathered}`

Final answer:

$4333.15

8.33%