Answered: Suppose you saw a sign at your local…

Suppose you saw a sign at your local bank that said, "5.3% rate compounded semiannually – 5.5% Annual Percentage Yield (APY)." Is there anything wrong with the sign? Explain.

Holt Mcdougal Larson Pre-algebra: Student Edition 2012

1st Edition

ISBN:9780547587776

Author:HOLT MCDOUGAL

Publisher:HOLT MCDOUGAL

Chapter7: Percents

Section7.7: Simple And Compound Interest

Problem 2E

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Question

Suppose you saw a sign at your local bank that said,

"5.3%

rate compounded

semiannually

–

5.5%

Annual Percentage Yield (APY)." Is there anything wrong with the sign? Explain.

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Suppose you saw a sign at your local bank that​ said, ​"5.3​% rate compounded semiannually – 5.5​% Annual Percentage Yield​ (APY)." Is there anything wrong with the​ sign? Explain.

Suppose you saw a sign at your local bank that said, "5.3% rate compounded semiannually – 5.5% Annual Percentage Yield (APY)." Is there anything wrong with the sign? Explain.