What is the APY for 9.6% compounded daily?
A) 9.6%
B) 10.1%
C) 12.2%
D) 13.0%

Question

Quizplus · Accepted Answer

The APY (Annual Percentage Yield) can be calculated using the formula APY = (1 + r/n)^(n*1) - 1, where r is the annual interest rate (as a decimal), and n is the number of compounding periods per year. For a 9.6% interest rate compounded daily, r = 0.096, and n = 365. Plugging these values into the formula gives APY = (1 + 0.096/365)^(365*1) - 1 ≈ 0.10047, or 10.05%, which rounds to 10.1%.

What Is the APY for 9.6% Compounded Daily