Question

# 12-7.    Lucy Lane maintains a savings deposit with Monarch Credit Union. This past year Lucy received...

12-7.    Lucy Lane maintains a savings deposit with Monarch Credit Union. This past year Lucy received \$10.75 in interest earnings from her savings account. Her savings deposit had the following average balance each month: (Show Steps to receive answer. )

 January \$450 July \$450 February 350 August 425 March 300 September 550 April 550 October 600 May 225 November 625 June 400 December 500

What was the annual percentage yield (APY) earned on Lucy’s savings account?

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Lucy account had an average balance this year of:

[\$450 x 31 days + \$350 x 28 days + \$300 x 31 days + \$550 x 30 days+ \$225 x 31 days + \$400 x 30 days + \$450 x 31 days + \$425 x 31 days +\$550 x 30 days + \$600 x 31 days + \$625 x 30 days + \$500 x 31 days]/ 365 days

= \$452.0548

Then the APY is given by

=100*((1+10.75/452.0548)^(365/365)-1) = 2.378%

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