Annual percent yield APY = (1+ r/n)n -1, r = rate of interest , n = number of times compounded A) 6 % compounded quaterly ==> r = 0.06, n = 4 ==> APY = (1+ 0.06/4)4 -1 = 0.0614 = 6.14% B) 7 % compounded quaterly ==> r = 0.07, n = 4 ==> APY = (1+ 0.07/4)4 -1 = 0.0719 = 7.19% Solution Annual percent yield APY = (1+ r/n)n -1, r = rate of interest , n = number of times compounded A) 6 % compounded quaterly ==> r = 0.06, n = 4 ==> APY = (1+ 0.06/4)4 -1 = 0.0614 = 6.14% B) 7 % compounded quaterly ==> r = 0.07, n = 4 ==> APY = (1+ 0.07/4)4 -1 = 0.0719 = 7.19%.