4. What is the annual percentage yield (APY) for money invested at an annual rate of 4.45% compounded daily? Solution when the interest is compounded daily, N = 365, thus APYDAILY = (1 + r/365)365 - 1. then here r=4.45% hence (1+0.0445/365)^365 -1 (1+0.00012)^365 -1 (1.00012)^365 -1 1.0455-1 0.0455 4.5%.