Question

Matilda deposited $16,100 into a savings account, and she didn't make any deposits or withdrawals for a year. If, after interest was paid for the year, Matilda's new balance was $16,731.12, what was the APY of the savings account?

Answer 1

Answer:

The APY would be 3.92%.

Step-by-step explanation:

Given,

The initial amount in the account = $ 16,100,

Let r be the APY ( annual percentage yield ),

If any deposit and withdraws were not made,

Then, the total amount after 1 year would be,

$A=16100(1+\frac{r}{100})$

According to the question,

$16100(1+\frac{r}{100})=16731.12$

$1+\frac{r}{100}=\frac{16731.12}{16100}$

$1+\frac{r}{100}=1.0392$

$\frac{r}{100}=0.0392$

$\implies r = 3.92\%$

Hence, the APY would be 3.92 %.

Answer 2

R=i/pt
i=16731.12-16100=631.12
R=631.12/16,100×1
R=0.0392*100=3.92%