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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%

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4. What is the annual percentage yield (APY) for money invested at a.pdf

  • 1. 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%