question 19 calculate the apy for an account that pays 9.5%: 1. compounded daily % 2. compounded monthly %…

Explanation:

Step1: Recall the APY formula

The formula for APY is $APY=(1 + \frac{r}{n})^{n}-1$, where $r$ is the annual interest rate (in decimal form) and $n$ is the number of compounding periods per year. Given $r = 0.095$.

Step2: Calculate APY for daily - compounding

For daily - compounding, $n = 365$. $APY=(1+\frac{0.095}{365})^{365}-1$ $APY=(1 + 0.000260274)^{365}-1$ $APY\approx1.0997 - 1=0.0997$ or $9.97%$

Step3: Calculate APY for monthly - compounding

For monthly - compounding, $n = 12$. $APY=(1+\frac{0.095}{12})^{12}-1$ $APY=(1+0.0079167)^{12}-1$ $APY\approx1.0992 - 1 = 0.0992$ or $9.92%$

Step4: Calculate APY for annual - compounding

For annual - compounding, $n = 1$. $APY=(1+\frac{0.095}{1})^{1}-1$ $APY=1.095 - 1=0.095$ or $9.5%$

Answer:

1. $9.97%$
2. $9.92%$
3. $9.5%$