ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$36.00
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$1, 236.27
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$1, 254.81
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$54.00
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Detailed explanation-1: -The average APY in the U.S. is 0.06%. Some banks pay as low as 0.01% or as high as 0.5% or more.
Detailed explanation-2: -What’s the difference between monthly interest and annual interest? The difference between monthly and annual interest is that annual interest is paid annually, whereas monthly interest is paid monthly, making it a good option if you want a regular income stream.
Detailed explanation-3: -Simply divide your APY by 12 (for each month of the year) to find the percent interest your account earns per month. For example: A 12% APY would give you a 1% monthly interest rate (12 divided by 12 is 1). A 1% APY would give you a 0.083% monthly interest rate (1 divided by 12 is 0.083).
Detailed explanation-4: -Here’s the simple interest formula: Interest = P x R x T. P = Principal amount (the beginning balance). R = Interest rate (usually per year, expressed as a decimal). T = Number of time periods (generally one-year time periods).