Question

Step 1

According to the given information:

Amount invested =$1000

Option (A) rate of interest =1.725% compounded semiannually

Formula used to find annual percentage yield is:

Step 2

For calculating option (1) put the values in the above formula:

For semiannually n=2;

Step 3

For calculating option (2) rate of interest is 1.675%

And, in this case it is needed ...

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