Examples 10/1
1. Back to Example 2 last time. You place the $1000 in a bank account whose APR is
8%. Now, suppose the bank pays the interest quarterly, or four times a year (that is,
once every 3 months). How much will the year-end balance be?
2. In last example, what is the relative balance change in 1 year?
3. Example 1 again.
(a) Find the APY if the interest is paid every month.
(b) Find the APY if the interest is paid every day. (Suppose there are 365 days in 1
year)
4. Example 1 again. Find the APY if the interest is paid continuously.