Savings account a and savings account b both offer aprs of 5%, but savings account a compounds interest annually, while savings account b compounds interest monthly. which savings account offers the higher apy?

Account B

Step-by-step explanation:

When compounding interests monthly that means that there will be 12  times a year that the interests will be compounded, while in the other option the interests will only be compounded one time a year. Since that is the case, the one that will produce more interests for the person opening that account would be B since the interests are compounded annually.

Account B will yield more.

Savings account A and savings account B both offer APRs of 5%

But savings account A compounds interest annually, while savings account B compounds interest monthly.

Lets check which account will yield more :

Lets take p = 10,000

r = 5% or 0.05

n = 1

t = 1

Compound interest formula is :

Substituting values in formula;

= $10500

Lets take p = 10,000

r = 5% or 0.05

n = 12

t = 1

Compound interest formula is :

Substituting values in formula;

= $10510

We can see that account B gives more yield as compared to account A. When an account is compounded monthly, we earn interest on interest. This is why we yield more.

Therefore, account B will yield more.

to find the unit price, we must figure out the cost of one item (in this case one dish towel).   to do this, we divide the total price ($7.92) by the number of items bought (for this problem it is 8, because there are eight dish towels in one pack).  

$7.92/8 = $0.99

therefore, the unit price, or the price of one dish towel, is $0.99.

hope this !