Question

Maisie can use this equation to find r, the annual interest rate of an account that compounds interest daily: r=365(0.028+1)1365−365 What are the annual percentage yield and annual interest rate for Maisie's account?

Answer 1

The annual interest rate for Maisie's account is 0 or 0%.

Step-by-step explanation:

The given equation to find the annual interest rate r is:

r = 365(0.028+1)/(365-365)

To calculate the annual percentage yield, we need to know the principal amount, the interest rate, and the compounding period. Since these details are not mentioned in the question, we cannot calculate the annual percentage yield. However, the annual interest rate can be calculated using the given equation.

Let's solve the equation step by step:
r = 365(0.028+1)/(365-365)
r = 365(1.028)/0
r = 0

The annual interest rate for Maisie's account is 0 or 0%.