Drag the numbers below to put them in order from least to greatest:
1 answer:
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Answer:
2.02%.
Step-by-step explanation:
We are asked to find the Annual Percentage Yield (APY) for the nominal rate of 2% compounded quarterly.
We will use APY formula to solve our given problem.
, where,
r = Stated annual interest rate in decimal form,
n = Number of times interest is compounded per year.
Compounded quarterly means that the value of n is 4.
Let us convert 0.020150500625 to percent as:
Therefore, the required APY would be 2.02%.