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25 July, 11:03

Suppose Jessica opens a savings account with $5000 that compounds interest daily. The APR at the time Jessica opens the account is 3.5%. She makes no other withdrawals or deposits. What is her APY to the nearest hundredth of a percent?

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  1. 25 July, 13:47
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    Hi there

    1+0.035 = (1+r/360) ^360

    Solve for r

    R = (((1.035) ^ (1:360) - 1) * 360) * 100

    R=3.44%
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