Question

Suppose Jessica opens a savings account with $5000 that compounds interest daily. The APR at the time Jessica opens the account is 3.5%. She makes no other withdrawals or deposits. What is her APY to the nearest hundredth of a percent?

Answer 1

Hi there

1+0.035=(1+r/360)^360
Solve for r
R=(((1.035)^(1÷360)−1)×360)×100
R=3.44%