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The question asks to determine the **APY** (Annual Percentage Yield) for a loan amount less than $20,000, where the **APR** (Annual Percentage Rate) is 14.25% and interest is compounded quarterly.

We can use the following formula to calculate the APY:

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

Where:
- $ r $ is the **APR** (as a decimal),
- $ n $ is the number of compounding periods per year (quarterly means $ n = 4 $).

Let's calculate the APY for this case. I'll compute it now.The **APY** (Annual Percentage Yield) for a loan amount less than $20,000, with a 14.25% APR compounded quarterly, is **15.03%**.

Do you want more details on the calculation, or have any other questions?

Here are 5 related questions you might find helpful:
1. How does APR differ from APY in loan calculations?
2. What happens if the compounding frequency changes from quarterly to monthly?
3. How do you calculate APY for larger loan amounts with different APRs?
4. What is the relationship between APR, APY, and effective interest rates?
5. How does compounding frequency affect the overall loan cost?

**Tip:** The more frequently interest compounds, the higher the APY will be compared to APR.

The First Bank of Lending lists the following APR for loans. Determine the APY, or effective interest rate, for a loan amount that is less than $20,000. Round your answer to the nearest hundredth, if necessary.

Learn how to calculate the Annual Percentage Yield (APY) for a loan amount less than $20,000, with a 14.25% APR compounded quarterly. This problem covers the formula and concept of compounding interest. Suitable for students in Grades 10-12.

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