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maxonik [38]
3 years ago
5

Please provide a step-by-step instruction: An agent is selling an investment that earns 4.315% compounded semiannually. What is

the APY (in percent) of the investment? (Enter a number. Round to the nearest hundredth of a percent.)
Mathematics
1 answer:
nasty-shy [4]3 years ago
6 0

Answer:

  4.36%

Step-by-step explanation:

For a nominal rate r that is compounded n times per year, the APY is given by ...

  APY = (1 +r/n)^n -1

Filling in your numbers, you find the APY to be ...

  APY = (1 +.04315/2)^2 -1 ≈ 0.0436155 ≈ 4.36%

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