Effective rate (APY) is: Never related to compound table Interest for one year divided by annual rate Interest for one year divi

Question

11111nata11111 [884]

3 years ago

11

Effective rate (APY) is: Never related to compound table Interest for one year divided by annual rate Interest for one year divi

ded by principal for 2 years Interest for one year divided by principal None of these

Mathematics

1 answer:

ANEK [815] · Answer 1 · 2022-01-18T05:56:34+03:00

ANEK [815]3 years ago

5 0

APY=annual percentage yield
is the rate we get for depositing an amount for a year after taking into account compound interest.
Therefore it is the interest for one year divided b the principal.