A passbook savings account has a rate of 5%. Find the effective annual yield if the interest is compounded quarterly.

Effective annual yield = 0.05094534 or 5.094%

Step-by-step explanation:

Given:

Rate of interest (r) = 5% = 0.05

Interest = compounded quarterly

Find:

Effective annual yield = Y

Computation:

Effective annual yield = 0.05094534 or 5.094%

1 number

if we use a graphing calculator, there is only one such number that satisfies the conclusion of the mean value theorem, that is, a number such that

where the right-hand side is the average rate of change of f on the interval [0.5,0.75], which is the slope of the secant line.

in the attached graph, the black line is the secant line which has its slope as the average rate of change of f on [0.5,0.75], while the orange line is the only tangent line to the graph of f in the interval that satisfies the mvt conclusion.