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25 September, 05:43

If Apr of a savings account is 2.7% and interest is compounded quarterly, what is the approximate APY of the account

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  1. 25 September, 07:52
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    0.0273 = 2.7%

    Explanation:

    APY = (1 + r/m) ^m - 1

    = (1 + 0.027/4) ^4 - 1

    = 0.0273 = 2.73%
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