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dusya [7]
1 year ago
13

An account has a rate of 1.9%. Find the effective annual yield if the interest is compounded quarterly.

Mathematics
1 answer:
True [87]1 year ago
6 0

Answer:

1.914 %

Step-by-step explanation:

Compounded quarterly means 4 periods per year  = n

   interest in decimal form per period    i = .019/4 = .00475

   Formula    

       annual yield =  ( 1+ i)^n  -1

                   (1+ .00475)^4  -1  = .01914  = ~ 1.914%

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