Solve the problem.
-Find the annual percentage yield if $2372 is invested at 8.5% compounded continuously.
A) 11.09 %
B) 13.31 %
C) 8.87 %
D) 15.53 %

Question

Quizplus · Accepted Answer

The annual percentage yield (APY) for an investment compounded continuously is calculated using the formula APY = e^r - 1, where r is the annual interest rate as a decimal. For an 8.5% interest rate, r = 0.085. Therefore, APY = e^0.085 - 1 ≈ 0.0887 or 8.87%.

Solve the Problem. -Find the Annual Percentage Yield If $2372 Is Invested at Is