3 years ago

A bank offers an APR of 6.2% compounded daily .the annual percentage yeild is ___% ?

Mathematics

1 answer:

Pani-rosa [81]3 years ago

7 0

The annual yield is

(1 + 0.062/365)³⁶⁵ = 1.06396

The percentage yield is therefore 6.396% .

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$7000 is compounded semiannually at a rate of 11% for 21years Find the total amount and round to the nearest cent

photoshop1234 [79]

$\text{Given that }\$7000 \text{ is compounded semiannualy at a rate of }11\% \text{ for 21 years}\\
\\
\text{we know that the amount after t year when compounded is given by}\\
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A=P\left ( 1+\frac{r}{n} \right )^{nt}\\
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\text{here P is the principal amoount, so }P=7000,\\
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\text{r is the interest rate, }r=11\%=0.11\\
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\text{n is the number of times in a year, here semiannulay, so }n=2,\\
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\text{and t is the time, so }t=21\\
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\text{so the amount after 21 years is}$

$A=7000\left ( 1+\frac{0.11}{2} \right )^{2(21)}\\
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\Rightarrow A=7000\left ( 1+0.055 \right )^{42}\\
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\Rightarrow A=7000\left ( 1.055 \right )^{42}\\
\\
\Rightarrow A\approx 66328.68$