Question

Find the annual percentage yield for an account with an APR of 13.75% compounded continuously. Round your percentage to two places after the decimal point.

Answer 1

14.74%

Explanation:

The formula for ANNUAL PERCENTAGE YIELD (APY) for an account that is COMPOUNDED CONTINUOUSLY is given as

APY = Pe^rt - 1

Where P = Principal

e = exponential

r = rate

t = time

Since Principal and Time was not given in the question,

APY = e^r - 1

r = 13.75% = 0.1375

APY = e^0.1375 - 1

APY = 1.147401706 - 1

APY = 0.147401706

Converting to percentage

= 0.147401706 × 100

= 14.7401706%

Approximately to 2 decimal places: 14.74%

Therefore, the annual percentage yield is 14.74%