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Bianca's bank offers a savings account with a 2.1% APR, compounded monthly. What is the actual annual percentage yield on this account?

A2.19%
B2.17%
C2.12%
D2.15%

Verified Answer :

MissPhiladelphia

Bianca's bank offers a savings account with a 2.1% APR,
compounded monthly. The the actual annual percentage yield on this account can
be calculated using i = (1+ r/m)^m, where i is the actual APR, r is the nominal
interest rate and m the compounding period in a year. APR is equal to 2.12%

Answer would be 2.12% :)

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