Financial Risk Manager Part 2

Ultimate access to all questions.

Explanation:

The correct answer is D.

\text{APY earned} = 100 \left[ \left(1 + \frac{\text{Interest earned}}{\text{Average account balance}} \right)^{\frac{365}{\text{Days in period}}} - 1 \right]

Month	Account Balance	Number of Days in the Month	AC Balance* Days
January	520	31	16,120
February	380	28	10,640
March	440	31	13,640
April	300	30	9,000
May	385	31	11,935
June	470	30	14,100
July	530	31	16,430
August	615	31	19,065
September	750	30	22,500
October	810	31	25,110
November	845	30	25,350
December	530	31	16,430
Total		365	200,320

Average account balance = $\frac{200,320}{365 \text{ days}} = \`$ 548.82`$

\text{APY} = 100 \left[ (1 + \frac{\`$12.25`}{\`$548.82`})^{\frac{365}{365}} - 1 \right] = 2.23\%

(Note: The interest earned of `$12.25` is used in the calculation as part of the provided solution).

Explanation:

The correct answer is D.

\text{APY earned} = 100 \left[ \left(1 + \frac{\text{Interest earned}}{\text{Average account balance}} \right)^{\frac{365}{\text{Days in period}}} - 1 \right]

Month	Account Balance	Number of Days in the Month	AC Balance* Days
January	520	31	16,120
February	380	28	10,640
March	440	31	13,640
April	300	30	9,000
May	385	31	11,935
June	470	30	14,100
July	530	31	16,430
August	615	31	19,065
September	750	30	22,500
October	810	31	25,110
November	845	30	25,350
December	530	31	16,430
Total		365	200,320

Average account balance = $\frac{200,320}{365 \text{ days}} = \`$ 548.82`$

\text{APY} = 100 \left[ (1 + \frac{\`$12.25`}{\`$548.82`})^{\frac{365}{365}} - 1 \right] = 2.23\%

(Note: The interest earned of `$12.25` is used in the calculation as part of the provided solution).

Comments (0)

No comments yet.

Exam-Like

Community

UAnonymous

Last updated: July 5, 2026 at 07:08

0.0125

0.0156

0.0196

0.0223