What's the annual percentage yield for money invested at the rate of 3.2% compounded continuously?Answer:__________ %Convert your answer into a percentage. Round your answer to 2 decimal places.
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Answer:The Annual percentage yield is 3.25%.Step-by-step explanation:Given : Money invested at the rate of 3.2% compounded continuously.To find : What's the annual percentage yield?Solution : Money invested at the rate of 3.2% compounded continuously.The compounded continuously formula is [tex]A=Pe^{rt}[/tex]Where, P is the principal P=1t is the time t=1r is the interest rate r=3.2%=0.032Substitute the value in the formula,[tex]A=Pe^{rt}[/tex][tex]A=1\times e^{0.032}[/tex][tex]A=1.0325[/tex]The Annual percentage yield is [tex]APY=(A-1)\times 100[/tex][tex]APY=(1.0325-1)\times 100[/tex][tex]APY=0.0325\times 100[/tex][tex]APY=3.25\%[/tex]Therefore, The Annual percentage yield is 3.25%.