To calculate the earnings from an annual percentage yield, you should: A. Multiply the amount in the account by the initial deposit.
B. Multiply the nominal interest rate by the interest earned.
C. Multiply the amount in the account by the nominal interest rate.
D. Multiply the initial deposit by the nominal interest rate.
The correct answer is D. Multiply the initial deposit by the nominal interest rate.
Explanation: To calculate the earnings from an annual percentage yield (APY), you typically start with the initial deposit and multiply it by the nominal interest rate. This gives you the earnings for that year before considering compounding effects. Keep in mind that APY already takes into account compounding effects to show the true interest earned over a year.