annual percentage yield (apy) is calculated by: a. multiplying the amount of the deposit by the nominal…
annual percentage yield (apy) is calculated by: a. multiplying the amount of the deposit by the nominal interest rate. b. dividing the amount of the deposit by the nominal interest rate. c. dividing the amount of the deposit by the compound interest rate. d. adding the value of the deposit to the nominal interest rate.
Answer
Brief Explanations:
Annual percentage yield (APY) is related to compound - interest calculations and is not calculated by any of the operations described in options A, B, C, or D. However, among the given options, the concept of APY is related to interest rates. The nominal interest rate is a part of the APY calculation in a more complex compound - interest formula. But the simple multiplication of the deposit amount by the nominal interest rate gives simple interest, not APY. None of these options correctly describe the calculation of APY, but if we consider the relationship with interest rate, the closest incorrect operation conceptually is related to the nominal interest rate.
Answer:
None of the above options are correct for calculating APY.