What is the annual percentage yield (APY) for money invested at the given annual rate? Round results to the nearest hundredth of a percent:
-5% compounded semiannually
A) 5.13%
B) 5.09%
C) 5.00%
D) 5.06%

Question

Quizplus · Accepted Answer

The APY can be calculated using the formula: APY = (1 + r/n)^(n*t) - 1, where r is the annual interest rate, n is the number of compounding periods per year, and t is the time in years. For 5% compounded semiannually, APY = (1 + 0.05/2)^(2*1) - 1 = 0.050625 or 5.06%.

What Is the Annual Percentage Yield (APY) for Money Invested