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kobusy
3 days ago
12

A bank advertises an APR of 5.5% on personal loans. How much more is the APY when the rate is compounded monthly as compared to

when it's compounded quarterly? Explain your answer.
Mathematics
1 answer:
tester [11.8K]3 days ago
3 0
0.027%. A bank promotes an APR of 5.5% for personal loans. To address this problem, we will utilize the Annual Percentage Yield formula. In this formula, r signifies the interest rate in decimal form, and n represents the number of compounding periods per year. First, we convert the interest rate into decimal format. Next, we will calculate APY while compounding monthly using n = 12 and r = 0.055 within the APY formula. We proceed to do the same for quarterly compounding by substituting n = 4 and r = 0.055 into the APY formula. To determine the difference, we subtract the quarterly APY from the monthly APY. Therefore, the APY for monthly compounding is 0.027% higher than for quarterly compounding.
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17 days ago
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1 month ago
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In the figure, CD = EF and AB = CE. Complete the statements to prove that AB = DF.
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Answer:

1. Addition Property of Equality

2. Segment addition

3. Substitution Property of Equality.

4. Transitive Property of Equality.

Step-by-step explanation:

Given: CD = EF and AB = CE

To Show: AB = DF

Following the steps outlined:

1. CD + DE = EF + DE by the (addition) Property of Equality.

This shows that the same value has been added to both sides of the equation.

2. CE = CD + DE and DF = EF + DE through (segment addition).

This indicates that CE and DF are segments, and the length of any segment equals the total of its parts.

3. CE = DF according to the (Addition, subtraction, substitution, transitive) Property of Equality. Recognizing that CE = CD + DE and using the fact that CD = EF allows us to replace CD with EF.

So, CE = EF + ED = FD (via substitution) Property of Equality.

4. Since AB = CE and CE = DF, we can conclude AB = DF by the (transitive) Property of Equality.

This follows the rule that if x = y and y = z, then x = z.

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