Answer:
the approximate APY of the account is 2.73%
Step-by-step explanation:
We know the formula for APY which is given by
[tex]APY=(1+\frac{r}{n} )^n-1[/tex]
here, r= interset rate = 2.7% = 0.027
n = compounding cycles = 4
On plugging these values in the above formula, we get
[tex]APY=(1+\frac{ 0.027}{4} )^4-1[/tex]
[tex]=(1+0.00675)^4-1\\\\=(1.00675)^4-1\\\\1.027274607-1\\\\=0.02727[/tex]
On simplifying this we get
0.02727 = 0.02727*100
= 2.73%
Therefore, the approximate APY of the account is 2.73%
