(Enter your answers as a percentage rounded to 2 decimal places.) (a) Wesbanco offers an account 7.64 % interest compounded daily. APY = % (b) PNC offers an account with 7.69 % interest compounded weekly. APY = % (c) United Bank offers an account with 7.74 % interest compounded monthly. APY = % (d) BB&T offers an account with 7.85 % interest compounded quarterly. APY = % (e) Navy Federal offers an account with 7.89 % interest compounded semi-annually. APY = %
You are shopping around for different bank accounts and have found several different banking institutions offering different types of interest.
Calculate the effective rate of return (also known as the annual percentage yield (APY)) of each bank account.
Hint: rE=(1+rn)n−1rE=1+rnn−1
(Enter your answers as a percentage rounded to 2 decimal places.)
(a) Wesbanco offers an account 7.64 % interest compounded daily.
APY = %
(b) PNC offers an account with 7.69 % interest compounded weekly.
APY = %
(c) United Bank offers an account with 7.74 % interest compounded monthly.
APY = %
(d) BB&T offers an account with 7.85 % interest compounded quarterly.
APY = %
(e) Navy Federal offers an account with 7.89 % interest compounded semi-annually.
APY = %
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
