How does the annual percentage yield (APY) help a person decide whether to put his...
90.2K
Verified Solution
Link Copied!
Question
Basic Math
How does the annual percentage yield (APY) help a person decide whether to put his money in Bank A or Bank B if both are offering 24- month CDs at 4.25% interest? The APY will tell the person which bank has earned the highest profits in the past year. The APY is able to determine whether the earnings on the CD will keep ahead of the rate of inflation. If Bank A has a higher credit rating than Bank B, Bank A will have a higher APY. The APY will show the actual interest rate earned as opposed to the stated rate after the frequency of compounding is taken into effect.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
