Answer:
Daisy finds out Gatsby lives near her in Chapter 5, after she and Gatsby are reunited at Nick's house.
Step-by-step explanation:
"The Great Gatsby" is a novel by American author F. Scott Fitzgerald (1896-1940). The story revolves around themes such as the depravity of the American society and the corruption of the American dream.
The story's narrator is Nick. His cousin, Daisy, is now married to a millionaire, Tom. However, five years before the story begins, she fell in love with Jay Gatsby, a young and poor soldier. Now, Gatsby too is a millionaire, and he has bought the mansion across the bay from Daisy's to be close to her.
Daisy does not know Gatsby lives near her. She only finds out about it in Chapter 5. Gatsby purposefully befriends Nick and asks him to invite Daisy to his (Nick's) house for tea. When Daisy comes, Gatsby appears. After a moment's confusion, they reconnect, and Gatsby invites her over to his place. This is the moment when Daisy realizes Gatsby lives next door to Nick and across the bay from herself.