Solve the problem.
-Find the annual percentage yield if $P is invested at 5.27% compounded continuously.
A) 9.47 %
B) 8.12 %
C) 6.76 %
D) 5.41 %

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 a rate of 5.27%, r = 0.0527. Plugging this into the formula gives APY = e^0.0527 - 1 ≈ 0.0541 or 5.41%.

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