Answer: 2.5%
Explanation: Economically speaking, If an account is compounded once a year the APY will always be equal to APR. Contrary to this, if an account is compounded more than once per year, the APY will always be greater than the APR. So, the answer is 2.5%.
The APR (annual percentage rate) and the APY (annual percentage yield) are both 2.5%. Due to the interest compounding quarterly, the two share the same equal amount in this case and have a 2.5% interest rate. APR, is usually found on a credit card, mortgage or a loan where there are payments being paid to a lender. The APY, is usually found when describing a savings or checking account that is interest bearing. An interest bearing account refers to an account in which you deposit money into, and you earn money overtime by keeping it in the bank.
