“if i had a savings account that has an annual percentage rate of 3.3% with interest compounded monthly. What is the annual percentage yield for this saving account? round to the nearest hundredth of a percent.”

To find the **Annual Percentage Yield (APY)** when the interest is compounded monthly, we use the following formula:

\[
\text{APY} = \left(1 + \frac{r}{n}\right)^n - 1
\]

Where:
- \( r \) is the annual interest rate (as a decimal),
- \( n \) is the number of times the interest is compounded per year.

Given:
- Annual Percentage Rate (APR) \( r = 3.3\% = 0.033 \),
- Interest is compounded monthly, so \( n = 12 \).

Now, substituting these values into the formula:

\[
\text{APY} = \left(1 + \frac{0.033}{12}\right)^{12} - 1
\]

Let me calculate this.The Annual Percentage Yield (APY) for a savings account with a 3.3% annual interest rate compounded monthly is **3.35%**, rounded to the nearest hundredth of a percent.

Would you like further explanation, or have any questions?

Here are 5 related questions you might find helpful:
1. What is the difference between APR and APY?
2. How does monthly compounding compare to daily compounding?
3. What happens to APY if the interest is compounded quarterly instead of monthly?
4. How can I calculate the future value of an investment using APY?
5. How does inflation affect the real value of interest earned?

**Tip:** APY always accounts for the effect of compounding, making it higher than the nominal APR if compounding occurs more than once per year.

if i had a savings account that has an annual percentage rate of 3.3% with interest compounded monthly. What is the annual percentage yield for this saving account? round to the nearest hundredth of a percent.

Learn how to calculate the Annual Percentage Yield (APY) for a savings account with a 3.3% Annual Percentage Rate (APR) compounded monthly. This guide explains the step-by-step solution using the compound interest formula and is ideal for students in Grades 10-12.

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