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FinnZ [79.3K]
3 years ago
7

Amanda's bank offers a savings account with a 2.8% APR, compounded monthly. What is the actual annual percentage yield on this a

ccount?
Mathematics
2 answers:
timofeeve [1]3 years ago
8 0

Answer:

The actual annual percentage yield is 2.84 %

Step-by-step explanation:

Since, the actual annual yield rate is,

i=(1+\frac{r}{n})^n-1

Where, r is the stated annual interest rate,

n is the number of compounding periods per year,

Here, r = 2.8 % = 0.028,

And, n = 12

Thus, the actual annual yield rate is,

i=(1+\frac{0.028}{12})^{12}-1

=0.0283621428759\approx 0.0284

Hence, the actual annual percentage yield is 2.84 % ( approx ).

Galina-37 [17]3 years ago
5 0
It is a. 2.84 percent
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<u><em>Hope this helps!</em></u>

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