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WORKSHEET (3.2)IV

# WORKSHEET (3.2)IV - APY is the simple interest rate that...

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WORKSHEET (3.2) IV 1. \$1 is deposited in a bank paying an annual interest rate of 10%, compounded continuously. (a) Find the balance after 1 year. (b) What is the APY for \$1 deposited at 10% compounded continuously? 2. \$1 is deposited in a bank paying an annual interest rate of 10%, compounded monthly. (a) Find the balance after 1 year. (b) What is the APY for \$1 deposited at 10% compounded monthly? The annual percentage yield

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Unformatted text preview: ( APY ) is the simple interest rate that would earn the same amount as a given annual rate for which interest is compounded. 3. A \$1,000 CD is purchased from each of the banks in the table shown below. Find the APY’s for each of the banks and compare the CDs. Bank Rate Compounded Advanta 4.93% Monthly DeepGreen 4.95% Daily Charter One 4.97% Quarterly Liberty 4.94% continuously...
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