Answer:
The annual percentage yield (APY) is a measure of the return on an investment that takes into account the effect of compounding interest. To calculate the APY for an investment of $8000 at an interest rate of 4.75% compounded daily, you can use the formula:
APY = (1 + r/n)^(n*t) - 1
where r is the annual interest rate as a decimal (0.0475 in this case), n is the number of times the interest is compounded per year (365 for daily compounding), and t is the number of years (1 in this case).
Plugging these values into the formula gives:
APY = (1 + 0.0475/365)^(365*1) - 1 APY ≈ 0.0486
So, the APY for this investment is approximately 4.86%.
Explanation: