Question

The savings account offering which of these APRs and compounding periods

Answer 1

Answer:

The answer is "Option C"

Step-by-step explanation:

The using formula$= (1+\frac{r}{n})^n -1$

→r = rate

→ n = compounded value

In choice a:

When compounded is monthly $4.0784\%$  

$n = 12$

$\to (1+ \frac{0.040784}{12})^{12} = 1.0403-1 = 0.0403$

In choice b:

When compounded is quarterly$4.0792\%$

$n = 3\\\\\to (1+ \frac{0.040792}{12} )^{3} = 1.0102-1 = .0102$

In choice c:

Whenn compounded is daily $4.0730 \%$

$n = 365\\\\\to (1+ \frac{0.040730}{12})^{365} = 3.328-1 = 2.328$

In choice d:

When compounded is semiannually$4.0798\%$

$n = 2\\\\\to (1+ \frac{0.040798}{12})^{2} = 1.0066-1 = 0.0066$

Answer 2

Answer:

C. 4.0730% compounded daily

Step-by-step explanation: