Answer:
4.577%
Step-by-step explanation:
Here we have to use formula APY = [tex]( 1 + \frac{r}{n} )^n -1[/tex]
r= stated annual interest rate
n = number of times compounded
Here r = 4.5% = 0.045
n = 4 because it is calculated quarterly.
Now plug in r =0.045 and b = 4 in the above formula, we get
APY = (1 + 0.045÷4)^4 - 1
= (1 + 0.01125)^4 - 1
= 1.01125^4 - 1
= 1.045765 - 1
= 0.045765
To find the percentage multiply by 100, we get
= 4.577%
Thank you.
