Suppose that your savings account earns interest at an APR of 6.7%, compounded quarterly. Determine the annual percentage yield
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Step-by-step explanation:
let
r = 0.067 or 6.7% annual percentage rate
m = 4 the number of compounding periods per year (compounded quarterly)
APY = (1 + r/m)^m - 1
APY = (1 + 0.067/4)^4 - 1
APY = 0.0687 or 6.87%
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