Suppose you saw a sign at your local bank that said, "7.4% rate compounded semiannually...
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Suppose you saw a sign at your local bank that said, "7.4% rate compounded semiannually - 7.9% Annual Percentage Yield (APY)." Is there anything wrong with the sign? Explain.Select the correct choice below and, if necessary, fill in the answer box to complete your choice.A. Yes. The number of compounding periods is incorrect. Interest should be compounded daily.B. Yes. The APY is incorrect. The correct APY is(Round to the nearest hundredth as needed.)C. No. The information on the sign is correct.
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