Explanation:

\text{APY earned} = \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 = $\frac{200,320}{365} = \`$ 548.82`$

\text{APY} = \left[ \left(1 + \frac{12.25}{548.82} \right)^{\frac{365}{365}} - 1 \right] = 0.02232 \approx 0.0223 \text{ or } 2.23\%

Q.4092 Neha Datta maintains a savings deposit with XYZ Credit Union. In 2019, Datta received `$12.25` in interest earnings from her savings account. Her savings deposit had the following average balance each month:

Month Account Balance
January 520
February 380
March 440
April 300
May 385
June 470
July 530
August 615
September 750
October 810
November 845
December 530

What was the annual percentage yield (APY) earned on Datta’s savings account?

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Last updated: July 5, 2026 at 07:08

0.0125

0.0156

0.0196

0.0223

Financial Risk Manager Part 2