Multiple Choice
Which of the following must be included on the continuation pages of a business letter to ensure clarity and proper identification?
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1. Introduction to Accounting
Useful Information
Multiple Choice
What is the annual percentage yield (APY) for a savings account with a \$250 balance that earns \$9 in interest over one year?
A
4.5\%
B
1.8\%
C
2.5\%
D
3.6\%
Verified step by step guidance1
Step 1: Understand the formula for Annual Percentage Yield (APY). APY is calculated using the formula: APY = (Interest Earned / Principal) × 100.
Step 2: Identify the given values from the problem. The principal (initial balance) is \$250, and the interest earned over one year is \$9.
Step 3: Substitute the given values into the formula. Replace 'Interest Earned' with \$9 and 'Principal' with \$250 in the formula: APY = (9 / 250) × 100.
Step 4: Perform the division first to calculate the fraction (9 ÷ 250). This will give you the decimal value representing the interest rate.
Step 5: Multiply the result of the division by 100 to convert the decimal into a percentage, which represents the APY.
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