Question

The annual percentage yield (APY) is the _____.
interest rate on a checking account
amount of interest you're charged on a loan
amount of interest you'll earn in one year from a savings account
a certain type of savings account that yields the most interest

Answer 1

The answer is The amount of interest you'll earn in one year from a savings account
The annual percentage yield (APY) is paid to a depositor by a financial institution. The percentage is based on the existing amount after a certain period. If the owner of saving account choose not to take out the past interest revenue, the amount would be compounded for future years.

Answer 2

The term "yield" means the return that an investor will gain from a certain financial instrument, which means that the items that refer to costs are incorrect. In fact, the correct answer is that the APY is the "amount of interest you'll earn in one year from a savings account". An amount of money deposited today will earn an amount in one year's time that is stated by the APY.