draz

Thanks! Here it is:
A client is confused about two terms on some certificate of deposit rates quoted at his bank in the US. You explain that the stated annual rate is a rate that does not take into account compounding within a year. The rate his bank calls APY (annual percentage yield) is the effective annual rate taking into account compounding. The bank’s customer service rep mentioned monthly compounding, with $1000 becoming $1061.68 at the end of a year. To prepare to explain the terms to your client, calculate the stated annual interest rate that the bank must be quoting.
I can’t figure out how to solve for this using my calculator. Thanks!