Answered

Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Join our Q&A platform and connect with professionals ready to provide precise answers to your questions in various areas. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

of 40
Which APR and compounding period offer the best APY on a savings
account?
A. 2.501%, compounded daily
B. 2.502%, compounded monthly
C. 2.504%, compounded semiannually
OD. 2.503%, compounded quarterly

Sagot :

GinnyAnswer
To determine which APR and compounding period offer the best APY (Annual Percentage Yield) on a savings account, let's evaluate each option and identify the one with the highest APY.

1. Option A: 2.501% APR, compounded daily
- Daily compounding means the interest is applied 365 times per year.

2. Option B: 2.502% APR, compounded monthly
- Monthly compounding means the interest is applied 12 times per year.

3. Option C: 2.504% APR, compounded semiannually
- Semiannual compounding means the interest is applied 2 times per year.

4. Option D: 2.503% APR, compounded quarterly
- Quarterly compounding means the interest is applied 4 times per year.

After evaluating the Annual Percentage Yield (APY) for each option, we find the following values:

- Option A (2.501%, daily): Approx. 2.5324%
- Option B (2.502%, monthly): Approx. 2.5309%
- Option C (2.504%, semiannually): Approx. 2.5197%
- Option D (2.503%, quarterly): Approx. 2.5266%

Among these calculated APYs, the highest value is approximately 2.5324%, which corresponds to Option A: 2.501% APR, compounded daily.

Therefore, the best choice, offering the highest APY, is:
Option A: 2.501%, compounded daily.
Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.