Question

Calvin deposited 12600 into a savings account and he didn't make a deposits or withdrawls for a year.If after interest was paid for a year. Calvin's new balance was 13,246.38, What was the APY of savings account?

A. 5.13%
B. 0.95%
C. 9.51%
D. 0.51%

Answer 1

5.13%

Explanation:

Did test

Answer 2

Savings account follows the simple compounding interest formula, thus F=P(1+i)^n
where
Future amount= 13246.38
Present worth= 12600
n=1, 1 year
substitute the values in the given formula, i= interest/100
i= 5.13%
APY for Calvin's savings account is 5.13%. Hope this helps you.