Which of the Following Is the Correct Formula for Computing

question 55

Multiple Choice

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

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Definitions:

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.