Answer:
3%
Explanation:
The annual percentage yield (APY) can be described as the real rate of return that earned on an investment or savings deposit while considering the compounding interest impact. The APY formula is as follows:
Annual Percentage Yield (APY) = (1 + Periodic rate)^n - 1
Where n denotes the number of period. Therefore, for this question, we have:
Annual Percentage Yield (APY) = (1 + 0.03)^1 - 1 = (1.03)^1 - 1 = 1.03 - 1 = 0.03, or 3%.
Therefore, the APY earned is 3%.
