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Answer:
4.92%
Step-by-step explanation:
First of all, recall that if you increase a number C in x%, then you will have
So <em>increasing a number in x% is equivalent to multiply it by (1+x/100) </em>
Now, suppose you have deposited $C where C is any amount > 0
If the bank offers an APR of 4.8% compounded daily, it means that your money increases daily.
So, after 365 days you will have
C multiplied by (1+0.048/365) 356 times, that is
(1)
Now, you want to find a value x, such that C increased in x% equals the amount in (1).That would be the percentage your money increased in one year (APY)
Computing this amount, we get
x = 4.92 rounded to the nearest hundreth.
And the bank is offering an APY of 4.92%