What is the current APY on this credit card if it is compounded monthly?
A)21 percent
B)22.99 percent
C)23.14 percent
D)24 percent

Question

Quizplus · Accepted Answer

The APY (Annual Percentage Yield) can be calculated using the formula for compound interest: 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. Assuming the question refers to an APR (Annual Percentage Rate) of 22.99% compounded monthly, the calculation would be APY = (1 + 0.2299/12)^(12*1) - 1, which equals approximately 0.2314 or 23.14%.

What Is the Current APY on This Credit Card If