to calculate the earnings from an annual percentage yield, you should: a. multiply the initial deposit by…

to calculate the earnings from an annual percentage yield, you should: a. multiply the initial deposit by the nominal interest rate. b. multiply the amount in the account by the initial deposit. c. multiply the nominal interest rate by the interest earned. d. multiply the amount in the account by the nominal interest rate.

to calculate the earnings from an annual percentage yield, you should: a. multiply the initial deposit by the nominal interest rate. b. multiply the amount in the account by the initial deposit. c. multiply the nominal interest rate by the interest earned. d. multiply the amount in the account by the nominal interest rate.

Answer

Brief Explanations:

To calculate earnings from an annual percentage yield (APY), you multiply the amount in the account (principal + accumulated interest if any) by the nominal interest rate. The initial deposit is just the starting - point money and not sufficient for the calculation. Multiplying the nominal interest rate by the interest earned doesn't make sense in this context, and multiplying the amount in the account by the initial deposit is an incorrect operation for finding interest earnings.

Answer:

D. multiply the amount in the account by the nominal interest rate.