Find the APY corresponding to the given nominal rates.
-$7 \%$ compounded monthly
A) $6.65 \%$
B) $7.3 \%$
C) $8.08 \%$
D) $7.23 \%$

Question

Quizplus · Accepted Answer

The APY (Annual Percentage Yield) is calculated using the formula: $ APY = (1 + \frac{r}{n})^n - 1 $, where $ r $ is the nominal rate and $ n $ is the number of compounding periods per year. For a 7% nominal rate compounded monthly, $ APY = (1 + \frac{0.07}{12})^{12} - 1 \approx 0.0723 $ or 7.23%.

Find the APY Corresponding to the Given Nominal Rates 7%7 \%7%

Find the APY Corresponding to the Given Nominal Rates $7 \%$