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Bob invested $500 at the start of the year and found he had $533 at the end of the year. What is the annual effective yield of his investment? Enter your answer as a percentage to two decimal places

User PatchyFog
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2 Answers

6 votes

Answer: 6.6%

Explanation:

In this problem, Bob deposits $500 into the account for one year. To find the effective annual yield, we start the formula rEFF=A−PP. Next, substituting, we now have rEFF=533−500500,. So rEFF=0.066, which rounded to two decimal places is 6.60.

User Funk Soul Ninja
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3.5k points
2 votes

Answer:33

Explanation:

User LiranBo
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