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REY [17]
3 years ago
8

Giving 25 points and brainliest for this! Please answer correctly if you know it!

Mathematics
1 answer:
AlladinOne [14]3 years ago
8 0

Answer:

The formula to calculate APY is (1 + (i/n))^n - 1

where i is the interest rate and n is the number of compounding periods.

Monthly APY = (1 +(0.055/12)^12 -1

APY = 0.0564 = 5.64%

Quarterly APY =  (1 +(0.055/4)^4 -1

APY = 0.0561 = 5.61%

Difference = 5.64 - 5.61 = 0.03% more when compounded monthly.

The APY is more when compounded monthly, because there are more compound periods.

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