document.write( "Question 726085: Find the annual perecentage yield. A bank offers an APR of 2.3% compounded daily. \n" ); document.write( "
Algebra.Com's Answer #444467 by Theo(13342)\"\" \"About 
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assuming the number of days in the year is 365, the calculations are done as follows:\r
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\n" ); document.write( "\n" ); document.write( "annual percentage rate = 2.5%
\n" ); document.write( "nominal annual interest rate = apr / 100% = .025
\n" ); document.write( "number of compounding periods per year = 365
\n" ); document.write( "daily interest rate = .025 / 365 = .00006849315068
\n" ); document.write( "add 1 to that to get 1.00006849315068
\n" ); document.write( "raise that to the 365th power to get (1.00006849315068)^365 = 1.025314243
\n" ); document.write( "subtract 1 from that to get .025314243
\n" ); document.write( "that's the effective annual interest rate.
\n" ); document.write( "multiply that by 100% to get 2.5314243%
\n" ); document.write( "that's the annual percentage yield.\r
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\n" ); document.write( "\n" ); document.write( "if you invest a dollar today and you get 2.5% annual percentage rate, you will have 1.025314243 dollars at the end of the year.\r
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\n" ); document.write( "\n" ); document.write( "your effective interest rate is equal to .025314243
\n" ); document.write( "your annual percentage yield is 2.5314243%.\r
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