Ask Question
5 February, 21:34

Justin deposits $8,000 in a one-year CD at 3.1% interest, compounded daily. What is Justin's annual percentage yield (APY) to the nearest hundredth of a percent? (Hint: Find the interest using the compounding formula. Then use the simple interest formula to find the rate, as if the interest you found at first were simple interest.)

+4
Answers (1)
  1. 5 February, 21:52
    0
    Total = Princ * (1 + rate/365) ^365*1 year

    Total = 8,000 * (1 +.031/365) ^365

    Total = 8,000 * (1.000084931506849315) ^365

    Total = 8,000 * 1.0314841461

    Total = 8,251.87

    rate = (1 +.031/365) ^365 = 1.0314841461 =

    3.14841461
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Justin deposits $8,000 in a one-year CD at 3.1% interest, compounded daily. What is Justin's annual percentage yield (APY) to the nearest ...” in 📘 Mathematics if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers