Question

Henry's savings account has an APR of 3.65%, calculates interest daily, and pays interest at the end of the month.

Answer 1

he means 2.30 my dude

Explanation:

Answer 2

daily interest rate is 3.717%

monthly interest rate is 3.712%

Explanation:

We are given

APR=3.65%

We can use formula

`EAR=(1+(APR)/(m))^(m)-1`

where

EAR is effective interest rate

APR is annual interest rate

m is number of periods

(a)

For daily:

APR=3.65%=0.0365

m=365

so, we can plug this value

`EAR=(1+(0.0365)/(365))^(365)-1`

`EAR=0.03717`

So, daily interest rate is 3.717%

(b)

For monthly:

APR=3.65%=0.0365

m=12

so, we can plug this value

`EAR=(1+(0.0365)/(12))^(12)-1`

`EAR=0.03712`

So, monthly interest rate is 3.712%