Question

Sharon deposits $8,000 in a 1-year CD at 2% interest, compounded daily.

Answer 1

Sharon's annual percentage yield (APY) to the nearest hundredth of a

percent is; 2.02%

How to calculate annual percentage yield (APY)?

We are told that;

Amount Deposited = $8000

Interest = 2%

Using the formula for annual percentage yield (APY), we have;

B = 8000 + (1 + (0.02/365))³⁶⁵⁽¹⁾

B = $8161.61

Interest is;

I = $8161.61 - $8,000

I = $161.61

Thus;

APY = 161.61/8000

APY = 0.0202

APY = 2.02%

Read more about annual percentage yield (APY) at; brainly.com/question/27997520

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