Answer
$4.341\%$
Work Step by Step
Use the formula for compounding daily for 1 year with $r=0.0425,n=365$, we have
$A(1)=P(1+\frac{0.0425}{365})^{365\times1}=1.0434P$, thus we can get the APY as
$APY=\frac{A(1)-P}{P}=4.341\%$
Precalculus: Mathematics for Calculus, 7th Edition
by Stewart, James; Redlin, Lothar; Watson, Saleem
Published by
Brooks Cole
ISBN 10:
1305071751
ISBN 13:
978-1-30507-175-9
Chapter 4 - Review - Exercises - Page 390: 95
Update this answer!
You can help us out by revising, improving and updating this answer.
Update this answerAfter you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.
