You invest $1600 in an account paying 5% interest compounded daily. What is the account's effective annual yield? Assume 360 days in a year.

The account's effective annual yield is ___% (Round to two decimal places as needed)

Question

Mathematics

Mohamed Bentley

15 July, 22:04

You invest $1600 in an account paying 5% interest compounded daily. What is the account's effective annual yield? Assume 360 days in a year.

The account's effective annual yield is ___% (Round to two decimal places as needed)

+5

Answers (1)

Know the Answer?

Mila Cruz · Answer 1

5.13%.

Step-by-step explanation:

Amount accumulated in 1 year

= 1600 (1 + 0.05/360) ^360

= $1682.03

Account's effective annual yield

= 82.03 * 100 / 1600 %

= 5.13%.

You invest $1600 in an account paying 5% interest compounded daily. What is the account's effective annual yield? Assume 360 days in a year.The account's effective annual yield is ___% (Round to two decimal places as needed)

You invest $1600 in an account paying 5% interest compounded daily. What is the account's effective annual yield? Assume 360 days in a year.

The account's effective annual yield is ___% (Round to two decimal places as needed)