Quantcast

A community for students.

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

starrhunter

  • 2 years ago

Herman opened a credit card at a department store with an APR of 24.45% compounded semiannually. What is the APY on this credit card?

  • This Question is Closed
  1. amistre64
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    assume a balance of 100, what do you get for the balance at the end of the year when compounding?

  2. amistre64
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    semiannually means 2 times a year the stated APR is for 1 year, so half it to the period rate

  3. starrhunter
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    i get 125.94

  4. starrhunter
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    but i still dont know how to find apy

  5. amistre64
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    125.94 is good; subtract the original 100

  6. amistre64
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    or look at it this way: APY is simple interest 100(APY) = 125.95

  7. starrhunter
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    25.94 is the apy?

  8. amistre64
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    yep

  9. starrhunter
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    awesome

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

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.