bank offers annual rate 2.13% compounded quarterly for deposit at least $25,000. What is APY?
Formula to calculate Annual percentage yield (APY) | ||
APY | ((1+(i/n))^n)-1 | |
i=interest rate | ||
n=number of compounding | ||
APY | ((1+(2.13%/4))^4)-1 | |
APY | 1.021471-1 | |
APY | 2.15% | |
Thus, APY is 2.15% | ||
bank offers annual rate 2.13% compounded quarterly for deposit at least $25,000. What is APY?
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