Amount of $1.00 Invested, Dally, Monthly. and Quarterly Compounding
Annual
Interest Period - 1 year
Rate Daily Monthly Quarterly
5.00% 1.051267 1.051162 1.050945
5.25% 1.053899 1.053782 1.053543
5.50% 1.056536 1.056408 1.056145
5.75% 1.059180 1.059040 1.058752
6.00% 1.061831 1.061678 1.061364
6.25% 1.064489 1.064322 1.063980
6.50% 1.067153 1.066972 1.066602
6.75% 1.069824 1.069628 1.069228
7.00% 1.072 501 1.072290 1.071859
7.25% 1.075185 1.074958 1.074495
5. Use Figure 12.3. Randy Strigle can invest $12,000 at either 6% compounded daily for 1 year or 7%
compounded quarterly for 1 yea. Use the figure to calculate the interest. What is the annual percentage yield
of the better investment?
a 5.219
c. 7.186%
b. 6.183%
d. 7.192%