Final answer:
The annual percentage yield (APY) for a savings account that earned $26 in interest on $400 over the past 365 days is 6.5%.
Step-by-step explanation:
To calculate the annual percentage yield (APY) for a savings account that earned $26 in interest on $400 over 365 days, we must use the formula for APY:
APY = (1 + (Interest / Principal))365 / Time - 1
In this case, the interest earned is $26, the principal amount is $400, and the time period is 365 days (1 year). Plugging these values into the formula, we have:
APY = (1 + ($26 / $400))365/365 - 1
= (1 + 0.065)1 - 1
= 1.065 - 1
= 0.065 or 6.5%
The annual percentage yield is 6.5%.