Suppose you deposit $20,000 in a savings account. After 210 days, you withdraw your funds. If...

Suppose you deposit $20,000 in a savings account. After 210 days, you withdraw your funds. If the bank paid you $340 in interest for the 210-day period, what is your APY?

Expert Solution

Given - Interest for 210 days =$340

No. of Days in a year = 365 days

So Interest for the year will be =

= 1.619 * 365

= 590.95

Annual Percentage yield =

=

= 2.95% Approx

Annual Percentage Yield will be 2.95%

jeff jeffy answered 2 years ago

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