Question

Find the annual percentage yield (APY) for the investment. $8000 at 4.75% compounded daily The annual percentage yield (APY) is%. (Type an integer or decimal rounded to three decimal places as needed.)​

Answer 1

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: