5. According to Bankrate, the best rate for a savings account in July 2020 was through Vio Bank...

Question

5. According to Bankrate, the best rate for a savings account in July 2020 was through Vio Bank paying 1.11% APY. If the stated or nominal interest rate is compounded monthly, find the stated interest rate equivalent to 1.11% APY. Use algebraic methods. Round to the nearest hundredth of a percent. (Source: https://www.bankrate.com/banking/savings/rates/)

Komalavalli · Accepted Answer

CI = P(1+(r/12)12t
Let say principal amount is $1000
Total years of investment is 2 years
CI = (1000)(1+0.0111/12)12*2
CI = (1000)(1+0.0111/12)12*2
CI = (1000)(0.0834)12*2
CI = (1000)(1.

5. According to Bankrate, the best rate for a savings account in July 2020 was through Vio Bank paying 1.11% APY. If the stated or nominal interest rate is compounded monthly, find the stated interest...

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