Find the annual percentage yield (APY).
-A bank offers an APR of $3.25 \%$ compounded quarterly.

Question

Quizplus · Accepted Answer

The APY can be calculated using the formula $APY = (1 + \frac{r}{n})^n - 1$, where $r$ is the annual interest rate (as a decimal) and $n$ is the number of compounding periods per year. For an APR of $3.25\%$ or $0.0325$ compounded quarterly ($n = 4$), $APY = (1 + \frac{0.0325}{4})^4 - 1 = 0.0329$ or $3.29\%$.

Find the Annual Percentage Yield (APY) 3.25%3.25 \%3.25% Compounded Quarterly 3.25%3.25 \%3.25%

Find the Annual Percentage Yield (APY) $3.25 \%$ Compounded Quarterly $3.25 \%$