Chapter 5 : Saving

Question

A bank features a savings account that has an annual percentage rate of 5.5 % with interest compounded annually. Hayden deposits $3,500 into the account.

What is the annual percentage yield (APY) for the savings account?

APY=���= %. Round to the nearest hundredth of a percent.

Answer 1

A=3500(1.055)=$3692.50 after 1 year

annual interest =3500(.055)

=$192.50

APR = 5.5% =.055=192.5/3500