Question

What's the annual percentage yield for money invested at the rate of 3.2% compounded continuously?

Answer:__________ %

Convert your answer into a percentage. Round your answer to 2 decimal places.

Answer 1

Answer:

The Annual percentage yield is 3.25%.

Step-by-step explanation:

Given : Money invested at the rate of 3.2% compounded continuously.

To find : What's the annual percentage yield?

Solution :

Money invested at the rate of 3.2% compounded continuously.

The compounded continuously formula is

$A=Pe^{rt}$

Where, P is the principal P=1

t is the time t=1

r is the interest rate r=3.2%=0.032

Substitute the value in the formula,

$A=Pe^{rt}$

$A=1\times e^{0.032}$

$A=1.0325$

The Annual percentage yield is

$APY=(A-1)\times 100$

$APY=(1.0325-1)\times 100$

$APY=0.0325\times 100$

$APY=3.25\%$

Therefore, The Annual percentage yield is 3.25%.