For life insurance policies, some of the premium pays for the cost of the insurance, and the remainder goes toward the cash value of the policy and earns interest like a savings account.

Consider the following insurance company options.

Company 1: pays 4.9% compounded monthly on the cash value of their policies

Company 2: pays 4.92% compounded semiannually on the cash value of their policies

What is the APY offered by each company? (Round your answers to the nearest hundredth.)

Company 1 %

Company 2 %

Which company offers a higher yield?

Company 1

Company 2