Question

Henry's savings account has an APR of 3.65%, calculates interest daily, and pays interest at the end of the month.

Answer 1

Answer:

daily interest rate is 3.717%

monthly interest rate is 3.712%

Step-by-step explanation:

We are given

APR=3.65%

We can use formula

$EAR=(1+\frac{APR}{m})^{m}-1$

where

EAR is effective interest rate

APR is annual interest rate

m is number of periods

(a)

For daily:

APR=3.65%=0.0365

m=365

so, we can plug this value

$EAR=(1+\frac{0.0365}{365})^{365}-1$

$EAR=0.03717$

So, daily interest rate is 3.717%

(b)

For monthly:

APR=3.65%=0.0365

m=12

so, we can plug this value

$EAR=(1+\frac{0.0365}{12})^{12}-1$

$EAR=0.03712$

So, monthly interest rate is 3.712%

Answer 2

Answer:

he means 2.30 my dude

Step-by-step explanation: