What is the APY for 12.3% compounded weekly?
A) 11.8%
B) 12.3%
C) 12.7%
D) 13.1%

Question

Quizplus · Accepted Answer

The Annual Percentage Yield (APY) can be calculated using the formula APY = (1 + r/n)^(n*1) - 1, where r is the annual interest rate (as a decimal), and n is the number of compounding periods per year. For a 12.3% interest rate compounded weekly, r = 0.123 and n = 52. Plugging these values into the formula gives APY = (1 + 0.123/52)^(52*1) - 1, which results in an APY of approximately 13.1%.

What Is the APY for 12.3% Compounded Weekly