Savings account a and savings account b both offer aprs of 4%, but savings account a compounds interest semiannually, while savings account b compounds interest quarterly. which savings account offers the higher apy?

Savings account B offers the higher APY.

Step-by-step explanation:

Let the principal amount be 1000 and time be 1 year.

We are told that savings account A and savings account B both offer APR's of 4%, but savings account A compounds interest semiannually, while savings account B compounds interest quarterly.

We will use compound interest formula to answer our given problem.

, where,

A= Final amount after T years.

P= Principal amount.

r= Annual interest rate in decimal form.

n= Number of times interest in compounding per year.

T= Time in years.

Let us find amount that savings account A will give after 1 year.

Semiannually means twice a year, so n will be 2.

Therefore, amount in savings account A after 1 year will be $1040.4.

Now let us figure out amount that savings account B will give after 1 year.

Compounded quarterly means 4 times a year, so n will be 4.

Therefore, amount in savings account B after 1 year will be $1040.6.

We can see that amount is savings account B is more that account A. Therefore, savings account B offers the highest APY as account B has more compounding periods than account A .

the answer is simply just 6n add the two together as they have an n