Suppose $4000 is deposited in a savings account that increases exponentially. Determine the APY if the account increases to $6000 in 3 years. Assume the interest rate remains constant and no additional deposits or withdrawals are made. Let p be the APY. Note that if the initial balance is y0, one year later the balance is p% more. p = [ ] (Type an expression using k as the variable.) Use the exact value of k to find the APY. The APY is [ ]%. (Do not round until the final answer. Then round to two decimal places as needed.)
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To find the APY, first we need to find the interest rate. Show more…
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