Earl Miller deposited $25,000 at Y Bank at an interest rate of 12% compounded quarterly. (Use the tables in the handbook.) The effective rate (APY) is:

You can look up tables from the handbook that you have.

However, since all tables are made from formulas, we can do the calculations here:

Effective rate is the actual rate for one year, split into the 4 compounding periods. APR (Annual percentage rate) = 12%. The interest rate per period is 12%/4=3%

Total interest after 4 periods, using the compound interest formula:

APY (annual percentage yield) = (1+0.03) ^4-1=1.12550881-1=12.55%