Al invests $5,500, at 6% interest, compounded monthly for one year. Calculate the annual percentage yield for his investment.

We Know that, The $5,500 is irrelevant, and the annual rate equivalent to 6% per annum, compounded monthly

let that annual rate be i

1+i = `(\frac{1 + .06}{12} )^{12}`

1+i = `1.005^{12}` = approx 1.06168

Thus, the equivalent annual rate is 6.168 %