Question

Question 7 of 10
What is the relationship between the nominal interest rate and the annual
percentage yield (APY)?
A. The nominal interest rate is calculated using the APY
B. The APY is calculated using the nominal interest rate,
C. The APY is the nominal interest rate divided by the number of
years for which a loan is taken out.
D. The nominal interest rate is the APY divided by the number of
years for which a loan is taken out

Answer 1

Answer: B : The APY is calculated using the nominal interest rate

Explanation:

Answer 2

B.The annual percentage yield (APY) is calculated using the nominal interest rate.

What Is the Difference Between Nominal Rate and APY?

APY (annual percent yield) is the powerful interest price that tends to be greater relevant to borrowers and creditors. The client, normally the borrower, will pay an effective price that varies from the nominal (stated) rate based totally on fees and the impact of compounding.

What does APY depend on?

That relies upon savings products. When you have a financial savings account, your APY is variable and might grow or lower based on market conditions. when you have a CD, the price you have got while you sign up is commonly the fee you will receive throughout your term.

Learn more about annual percentage yield here: https://brainly.com/question/2891209

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