Respuesta :
Answer:
20.7%.
Step-by-step explanation:
We have been given that Sam Seller offers credit at 19% interest per year.
We will annual percent yield formula to solve our given problem.
[tex]APY=(1+\frac{r}{n})^n-1[/tex], where,
r = Interest rate in decimal form,
n = Number of times interest is compounded per year.
Let us convert our given interest rate in decimal form.
[tex]19\%=\frac{19}{100}=0.19[/tex]
Upon substituting our given values in above formula we will get,
[tex]APY=(1+\frac{0.19}{12})^{12}-1[/tex]
[tex]APY=(1+0.015833)^{12}-1[/tex]
[tex]APY=(1.015833)^{12}-1[/tex]
[tex]APY=1.207450998-1[/tex]
[tex]APY=0.207450998[/tex]
Let us convert APY in percentage by multiplying our answer by 100.
[tex]APY=0.207450998\times 100[/tex]
[tex]APY=20.7450998\%\approx 20.7\%[/tex]
Therefore, the APY is 20.7%.
Answer:
[tex]\text{APR}=20.7\%[/tex]
Step-by-step explanation:
Given : Sam Seller offers credit at 19% interest per year.
To find : To the nearest tenth, APR ?
Solution :
The formula to calculate the annual percentage rate is given by
[tex]\text{APR}=(1+\dfrac{r}{n})^n-1[/tex]
where, r is the interest rate i.e. r=19%=0.19
n is the number of time period for which interest is compounded per month i.e. n=12.
Substitute in the formula,
[tex]\text{APR}=(1+\dfrac{0.19}{12})^{12}-1[/tex]
[tex]\text{APR}=(1+0.01583)^{12}-1[/tex]
[tex]\text{APR}=(1.01583)^{12}-1[/tex]
[tex]\text{APR}=1.2074-1[/tex]
[tex]\text{APR}=0.2074[/tex]
Into percentage,
[tex]\text{APR}=0.2074\times 100[/tex]
[tex]\text{APR}=20.74\%[/tex]
To the nearest tenth,
[tex]\text{APR}=20.7\%[/tex]
