A local bank advertised the following information: Interest 6.89%-effective annual yield 7.128%. No mention was made of

Question:

A local bank advertised the following information: Interest 6.89%-effective annual yield 7.128%. No mention was made of the interest period in the advertisement. Can you figure out the scheme used by the bank?
Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...