## Related questions with answers

Question

What is the annual percentage yield (or effective annual rate) for a nominal rate of (a) $8.4 \%$ compounded quarterly and (b) $10\%$ compounded continuously?

Solution

VerifiedAnswered 2 years ago

Answered 2 years ago

Step 1

1 of 6**(a)**
To determine the annual percentage yield for a nominal rate of $8.4\%$ compounded quarterly we will use this equation below.

$APY=\big(1+\frac{r}{m}\big)^m-1$

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