Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Join our platform to connect with experts ready to provide detailed answers to your questions in various areas. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

Karl invests $35,000 for 8 years in an account paying 7% compounded daily. Find
the annual percentage yield (APY) to the nearest hundredth of a percent. *
a.9.38%
b.12.72%
c.10.14%
d.11.36%


Sagot :

Answer:

principal (p)=$35000

time(t)=8years

rate ( r)=7%

Step-by-step explanation:

  • compounded amount(c.a)=p((1+r/100)^t )=$35000((1+7/100)^8)=$60136.5
  • compound interest gain=$60136.5-$35000=$25136.5
  • Karl gain interest in 1 year=$35000((1+7/100)-1)=$2450
  • gain % in 1 year=$2450/$25136.5×100%=9.74%