brenda1954
Answered

If the APR of a savings account is 5.3% and interest is compounded quarterly,
what is the approximate APY of the account?
O
A 5.41%
OB. 6,56%
O C. 1.05%
OD 5%

Answer :

Answer:

5.41%

Step-by-step explanation:

Let us assume that x amount is invested in a savings account with APR 5.3% and the interest is compounded quarterly.

Then the quarterly percentage rate is [tex]\frac{5.3}{4} =1.325[/tex]%.

Therefore, the amount x will become after one year  

[tex]x[1+ \frac{1.325}{100} ]^{4}  = 1.0541x[/tex]

Therefore, the annual percentage yeild will be [tex]\frac{(1.0541x - x) \times 100}{x}[/tex] % = 5.41%. ( Answer )

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