anonymous
  • anonymous
help please? Part 1: Explain which companies would advertise APY over APR and describe how this would help them attract customers. Part 2: Create a unique APR (state how often the rate is compounded) and calculate the corresponding APY. Use a comparison of the two rates to verify your answer to part 1.
Mathematics
chestercat
  • chestercat
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.

Get this expert

answer on brainly

SEE EXPERT ANSWER

Get your free account and access expert answers to this
and thousands of other questions

amistre64
  • amistre64
your lacking information for the problem in your post
amistre64
  • amistre64
APR of $1, compounded is:\[(1+\frac rn)^n\] APY is the rate it would have been if it had been stated at a compounding of 1 year:\[(1+k)\]where k is the APY \[1+k=(1+\frac rn)^n\] \[k=(1+\frac rn)^n-1\]
anonymous
  • anonymous
Yes it is a bit vague isn't it? Would this be the answer to my question or a formula to plug my own numbers into?

Looking for something else?

Not the answer you are looking for? Search for more explanations.

More answers

amistre64
  • amistre64
this is a general formula to aid you along the way let r be the rate that is compounded, let n be the number of times a year it gets assessed, and then k (or the APY) is just a function r and n as stated
amistre64
  • amistre64
since the APR and the APY give the same "values" at the end of the year, the strategy lies in how people relate the value of a rate to their investments
anonymous
  • anonymous
I am supposed to create my own scenaario here. But I can't come up with a rational one to really protray the relationship between apr and apy.
amistre64
  • amistre64
usually, a higher numerical value attracts more investors on a psychological level
amistre64
  • amistre64
think of a rate ... think of how many times a year you want to assess that rate ...
anonymous
  • anonymous
okay so. 15.5% compounded monthly
amistre64
  • amistre64
then r = 15.5, n=12 and k = (1+.0155/12)^12 - 1
amistre64
  • amistre64
got my decie in the wrong spot :) 0.155/12 that is
anonymous
  • anonymous
.0129
amistre64
  • amistre64
APR = 15.5 % APY = 16.6449 % according to the workings of my patent pending formulas
anonymous
  • anonymous
Ah okay, this seems to make it more concrete. thank you :)
amistre64
  • amistre64
youre welcome; and just to fix a typo ... APY = 16.6499 % these old eyes aint what they used ta be
anonymous
  • anonymous
Ahaha, I was checking that on my calculator and I noticed that too, no worries. It happens to the best of us!

Looking for something else?

Not the answer you are looking for? Search for more explanations.