find the annual percentage yield (to the nearest 0.01%). a bank offers an APR of 3.1% compounded daily.

Answer 1

e^(rt) = e^(.031 * 1)

Answer 2

thank you

Answer 3

let the equivalent annual rate be i
daily rate = .031/365 = .000084931
1.000084931^365 = 1+i
1+i = 1.031484143
i = annual = .03148

annual rate = .03148 or appr 3.15%

Scott's answer would be the instantaneous rate at .0314855
which of course would be very close to the daily compounded rate