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Therese made an investment of $ 1 , 0 0 0 into an account that pays a 1 0 % annual interest rate which is
Therese made an investment of $ into an account that pays a annual interest rate which is compounded quarterly. At the end of the month period, Therese earned $ in interest on her $ investment. She calculates her annual percentage yield APY to be This is an example of how interest is:compounded.
the same as the annual percentage rate APR
effected by the annual percentage yield APY
part of the truth in savings act.
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