Question
In: Finance
Calculate the Annual Percentage Yield (APY) on an account that has a stated interest rate of...
Calculate the Annual Percentage Yield (APY) on an account that has a stated interest rate of 6.21% . Presume your account you deposit 5,875 a year for the next 42 years. Calculate the value of your portfolio when the interest is compounded yearly, quarterly, monthly, and daily.
Solutions
Expert Solution
APY = (1 + (r/n))n - 1
where r = stated interest rate
n = number of compounding periods per year
Future value of portfolio is calculated using FV function in excel :
rate = APY
nper = 42
pmt = -5875
jeff jeffy answered 2 years agoRelated Solutions
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