What is the effective yield after one year for an investment of exist3, 065 in to a CD if the interest rate is 1.75% compounded monthly? 1.8100 Check your calculations. The formula is on p.59. Note, in the example (1 + 088/12)^12 - 1, we are taking the entire amount in the () to the 12th power. There was a misprint in the book. You can use either algebra or your financial calculator. You are comparing savings accounts. Which of the following account options has the higher effective annual yield? 7.2% compounded quarterly 7.2% compounded monthly 7.2% compounded semi-annual none of the above