Earl Miller deposited $25,000 at Y Bank at an interest rate of 12% compounded quarterly. The effective rate (APY) is:

Name: Earl Miller deposited $25,000 at Y Bank at an interest rate of 12% compounded quarterly. The effective rate (APY) is:
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Question

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The effective annual rate (APY) can be calculated using the formula: (1 + r/n)^(n*t) - 1, where r is the nominal rate (0.12), n is the number of compounding periods per year (4), and t is the time in years (1). This gives (1 + 0.12/4)^(4*1) - 1 = 0.1255 or 12.55%.

Earl Miller Deposited $25,000 at Y Bank at an Interest