Question
In: Finance
Find the annual percentage yield (APY) in the following situation. A bank offers an APR of...
Find the annual percentage yield (APY) in the following situation. A bank offers an APR of 4.5% compounded daily.
Solutions
Expert Solution
APY=[(1+APR/m)^m]-1
where m=compounding periods
=[(1+0.045/365)^365]-1
which is equal to
=4.60%(Approx)
jeff jeffy answered 2 years agoRelated Solutions
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