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

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 %