1. **State the problem:** We are given an interest rate of 8.3% compounded quarterly and an advertised APY (Annual Percentage Yield) of 8.56%. We need to verify if this APY is accurate. 2. **Formula for APY:** The APY is calculated using the formula: $$\text{APY} = \left(1 + \frac{r}{n}\right)^n - 1$$ where $r$ is the nominal annual interest rate (as a decimal), and $n$ is the number of compounding periods per year. 3. **Given values:** - Nominal interest rate $r = 0.083$ - Compounding periods per year $n = 4$ (quarterly) 4. **Calculate APY:** $$\text{APY} = \left(1 + \frac{0.083}{4}\right)^4 - 1 = \left(1 + 0.02075\right)^4 - 1$$ Calculate inside the parentheses: $$1.02075^4 - 1$$ Calculate $1.02075^4$: $$1.02075^4 = 1.0856$$ (rounded to 4 decimal places) So, $$\text{APY} = 1.0856 - 1 = 0.0856 = 8.56\%$$ 5. **Interpretation:** The calculated APY matches the advertised APY of 8.56%. Therefore, the advertisement is accurate. **Final answer:** The advertisement is accurate because the APY calculated from the nominal rate compounded quarterly is indeed 8.56%.