Determine the effective annual yield for \( \$ 1 \) invested for 1 year at \( 63 \% \) compounted guanaty. The effective annual yield is \( \square / \% \) (Round to the nearest hundredth)

To calculate the effective annual yield with a compounding rate of \( 63\% \), you would use the formula for compound interest, which is given by: \[ A = P(1 + r)^n \] where: - \( A \) is the amount of money accumulated after n years, including interest. - \( P \) is the principal amount (the initial amount of money). - \( r \) is the annual interest rate (decimal). - \( n \) is the number of years the money is invested or borrowed. For this example, \( P = 1 \), \( r = 0.63 \), and \( n = 1 \): \[ A = 1(1 + 0.63)^1 = 1(1.63) = 1.63 \] The effective annual yield (EAY) is then calculated by taking the accumulated amount minus the principal: \[ EAY = A - P = 1.63 - 1 = 0.63 \] To express this as a percentage, we multiply by 100: \[ EAY = 0.63 \times 100 = 63\% \] Thus, the effective annual yield is \( 63.00\% \).