Which of the following is the correct formula for computing your annual percentage yield? A)APY = (1+ r/n)ⁿ - 1 B)APY = (1- r/n)- 1 C)APY = [(1- r)ⁿ] + 1 D)APY = [(r - n)^r] - 1

Question

Quizplus · Accepted Answer

The correct formula for computing the annual percentage yield (APY) is APY = (1 + r/n)^n - 1, where r is the annual interest rate and n is the number of compounding periods per year. Choice A is a typographical representation of this formula, despite the unusual characters, as it follows the structure of adding 1 to the interest rate divided by the number of periods, raising this to the power of the number of periods, and then subtracting 1.

Which of the Following Is the Correct Formula for Computing