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Maria invests $4,800, at 6% interest, compounded quarterly for one year. Use Table 11-1 to calculate the annual percentage yield (APY) for her investment (as a %). Note: "Annual percentage yield" is also known as "effective interest rate." (Round your answer to two decimal places.)

Maria invests $4,800, at 6% interest, compounded quarterly for one year. Use Table 11-1 to calculate the annual percentage yield (APY) for her investment (as a %). Note: "Annual percentage yield" is also known as "effective interest rate." (Round your answer to two decimal places.)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Maria invests $4,800, at 6% interest, compounded quarterly for one year. Use Table 11-1 to calculate the annual percentage yield (APY) for her investment (as a %). Note: "Annual percentage yield" is also known as "effective interest rate." (Round your answer to two decimal places.) 

TABLE 11-2 Present Value Table (Present Value of $1 at Compound Interest) Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20%28 52339 16 19 21 0.92330 0.85282 0.84438 17 0.91871 18 0.91414 0.83602 0.90959 0.82774 0.90506 0.81954 22 1% 1/% 2% 3% 4% 7% 0.98522 0.98039 0.97087 0.93458 0.99502 0.99010 0.99007 0.98030 0.97066 0.96117 5% 6% 0.96154 0.95238 0.94340 0.94260 0.92456 0.90703 0.89000 0.87344 0.98515 0.97059 0.95632 0.94232 0.91514 0.88900 0.86384 0.83962 0.81630 0.98025 0.96098 0.94218 0.92385 0.88849 0.85480 0.82270 0.79209 0.76290 0.97537 0.95147 0.92826 0.90573 0.86261 0.82193 0.78353 24 0.97052 0.94205 0.91454 0.88797 0.83748 0.96569 0.93272 0.90103 0.87056 0.81309 0.75992 0.96089 0.92348 0.88771 0.85349 0.78941 0.73069 0.87459 0.83676 0.76642 0.70259 0.86167 0.82035 0.74409 0.67556 0.95610 0.91434 0.95135 0.90529 0.94661 0.89632 0.94191 0.88745 0.93722 0.87866 0.93256 0.86996 0.92792 0.86135 0.90056 0.81143 0.89608 0.80340 0.89162 0.79544 0.88719 0.78757 0.88277 0.77977 0.84893 0.83639 0.82403 0.81185 0.79985 0.78803 0.77639 0.76491 0.75361 0.74247 0.77303 0.68095 0.75788 0.66112 0.74301 0.64186 0.72845 0.71416 0.70016 0.68643 0.67297 0.60057 0.80420 0.72242 0.64958 0.58468 0.52679 0.47509 0.78849 0.70138 0.62460 0.55684 0.49697 0.44401 0.39711 0.53032 0.46884 0.41496 0.36770 0.50507 0.44230 0.38782 0.34046 0.48102 0.41727 0.36245 0.31524 0.39365 0.33873 0.57748 0.55526 0.29189 0.37136 0.31657 0.27027 0.35034 0.29586 0.25025 0.23171 0.21455 0.33051 0.27651 0.31180 0.25842 0.62317 0.60502 0.58739 0.57029 0.55368 0.79031 0.74622 0.70496 0.66634 0.71068 0.66506 0.62275 0.67684 0.62741 0.58201 0.54027 0.64461 0.59190 0.54393 0.50025 0.61391 0.55839 0.50835 0.46319 0.73150 0.72069 0.64684 0.71004 0.63416 0.69954 0.62172 0.68921 0.60953 0.47761 0.49193 8% 0.92593 0.85734 0.79383 0.73503 0.74726 0.71299 0.68058 0.53391 0.45811 0.51337 0.43630 0.49363 0.41552 0.47464 0.39573 0.45639 0.37689 0.65978 0.53755 0.43883 0.52189 0.42196 0.50669 0.40573 0.39012 0.37512 0.63017 0.58349 0.35894 0.29416 0.24151 0.34185 0.32557 0.31007 0.29530 0.19866 0.27751 0.22571 0.18394 0.26180 0.21095 0.17032 0.24698 0.19715 0.15770 0.23300 0.18425 0.14602 Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Transcribed Image Text:TABLE 11-2 Present Value Table (Present Value of $1 at Compound Interest) Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20%28 52339 16 19 21 0.92330 0.85282 0.84438 17 0.91871 18 0.91414 0.83602 0.90959 0.82774 0.90506 0.81954 22 1% 1/% 2% 3% 4% 7% 0.98522 0.98039 0.97087 0.93458 0.99502 0.99010 0.99007 0.98030 0.97066 0.96117 5% 6% 0.96154 0.95238 0.94340 0.94260 0.92456 0.90703 0.89000 0.87344 0.98515 0.97059 0.95632 0.94232 0.91514 0.88900 0.86384 0.83962 0.81630 0.98025 0.96098 0.94218 0.92385 0.88849 0.85480 0.82270 0.79209 0.76290 0.97537 0.95147 0.92826 0.90573 0.86261 0.82193 0.78353 24 0.97052 0.94205 0.91454 0.88797 0.83748 0.96569 0.93272 0.90103 0.87056 0.81309 0.75992 0.96089 0.92348 0.88771 0.85349 0.78941 0.73069 0.87459 0.83676 0.76642 0.70259 0.86167 0.82035 0.74409 0.67556 0.95610 0.91434 0.95135 0.90529 0.94661 0.89632 0.94191 0.88745 0.93722 0.87866 0.93256 0.86996 0.92792 0.86135 0.90056 0.81143 0.89608 0.80340 0.89162 0.79544 0.88719 0.78757 0.88277 0.77977 0.84893 0.83639 0.82403 0.81185 0.79985 0.78803 0.77639 0.76491 0.75361 0.74247 0.77303 0.68095 0.75788 0.66112 0.74301 0.64186 0.72845 0.71416 0.70016 0.68643 0.67297 0.60057 0.80420 0.72242 0.64958 0.58468 0.52679 0.47509 0.78849 0.70138 0.62460 0.55684 0.49697 0.44401 0.39711 0.53032 0.46884 0.41496 0.36770 0.50507 0.44230 0.38782 0.34046 0.48102 0.41727 0.36245 0.31524 0.39365 0.33873 0.57748 0.55526 0.29189 0.37136 0.31657 0.27027 0.35034 0.29586 0.25025 0.23171 0.21455 0.33051 0.27651 0.31180 0.25842 0.62317 0.60502 0.58739 0.57029 0.55368 0.79031 0.74622 0.70496 0.66634 0.71068 0.66506 0.62275 0.67684 0.62741 0.58201 0.54027 0.64461 0.59190 0.54393 0.50025 0.61391 0.55839 0.50835 0.46319 0.73150 0.72069 0.64684 0.71004 0.63416 0.69954 0.62172 0.68921 0.60953 0.47761 0.49193 8% 0.92593 0.85734 0.79383 0.73503 0.74726 0.71299 0.68058 0.53391 0.45811 0.51337 0.43630 0.49363 0.41552 0.47464 0.39573 0.45639 0.37689 0.65978 0.53755 0.43883 0.52189 0.42196 0.50669 0.40573 0.39012 0.37512 0.63017 0.58349 0.35894 0.29416 0.24151 0.34185 0.32557 0.31007 0.29530 0.19866 0.27751 0.22571 0.18394 0.26180 0.21095 0.17032 0.24698 0.19715 0.15770 0.23300 0.18425 0.14602 Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
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