Answer:
Therefore, the closest answer choice is C) 5.13%.
Step-by-step explanation:
To calculate the effective annual rate (EAR) for a savings account with a stated APR of 5% compounded daily, we can use the following formula:
EAR = (1 + (APR/n))^n - 1
where APR is the stated annual percentage rate, and n is the number of times the interest is compounded per year.
In this case, APR = 5% and the interest is compounded daily, so n = 365.
Plugging in the values, we get:
EAR = (1 + (0.05/365))^365 - 1
≈ 0.0513 or 5.13% (rounded to the nearest hundredth)
Therefore, the closest answer choice is C) 5.13%.