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.

the correct answer is 828.07

mr. graef told us it is 13 pints

step-by-step explanation: