Question

Find the annual percentage yield​ (APY) in the following situation.

A bank offers an APR of 6.2
​%
compounded daily.

Answer 1

`\bf \qquad \qquad \textit{Annual Yield Formula} \\\\ \qquad \qquad \left(1+(r)/(n)\right)^(n)-1 \\\\ \begin{cases} r=rate\to 6.2\%\to (6.2)/(100)\to &0.062\\ n= \begin{array}{llll} \textit{times it compounds per year} \end{array}\to &365 \end{cases} \\\\\\ \left(1+(0.062)/(365)\right)^(365)-1`

it'll give you a decimal, just multiply 100 times it, to get the % format