Find the annual percentage yield for an investment at the fo

Find the annual percentage yield for an investment at the following rates. (Round your answers to two decimal places.)

(a) 7.6% compounded monthly
%

(b) 7% compounded continuously
%

a) 7.6% compounded monthly:

APY = (1 +r/n)^n -1 ; n is no. of times compounded

(1 + 0.076/12)^12 -1

= 0.0787 = 7.87%

b) APY = e^r -1

= e^(0.07) -1 = 0.0725 = 7.25%