Find the annual percentage yield (APY).

Question

A bank offers an apr of 2.3% compounded daily

Answer 1

To find the annual percentage yield (APY) for a bank offering an APR of 2.3% compounded daily, you need to use the following formula:

APY = (1 + r/n)^n - 1

Where:
APY is the annual percentage yield
r is the annual interest rate as a decimal (in this case, 2.3% = 0.023)
n is the number of compounding periods per year (in this case, since it is compounded daily, n = 365)

Plugging in the values:

APY = (1 + 0.023/365)^365 - 1

Using a calculator, you can find:

APY ≈ 0.0232 or 2.32%

Therefore, the annual percentage yield (APY) for a bank offering an APR of 2.3% compounded daily is approximately 2.32%.