Lloyd deposited $14300 into a savings account, and he didn't make any deposits or withdrawals for a year. If, after interest was paid for the year, Lloyd's new balance was $14880.58, what was the APY of the savings account?

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DizzyBerco DizzyBerco · Answer 1 · 2019-03-18T05:02:41+01:00

Answer:

4.06%

Step-by-step explanation:

To solve for the APY of Lloyd, we use the formula:

[tex]R=\dfrac{I}{Pt}[/tex]

Since we don't know what the Interest earned is yet, we simply solve for the difference of the new balance and the old balance.

Interest Earned = $14880.58 - $14300

Interest Earned = $580.58

Now let's break down the values we have.

P = 14300

I = 580.58

t = 1

Now let's plug it into our formula.

[tex]R=\dfrac{580.58}{14300*1}[/tex]

[tex]R=\dfrac{580.58}{14300}[/tex]

[tex]R=0.0406[/tex]or 4.06%

omalror3 omalror3 · Answer 2 · 2019-12-05T16:42:52+01:00

Answer:

4.06%

Step-by-step explanation:

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