Find the annual percentage yield (APY) in the following situation. A bank offers an APR of 4.8% compounded daily. The annual percentage yield is %. (Do not round until the final answer. Then round to two decimal places as needed.) Enter your answer in the answer box O Type here to search hp

Answer:4.92%Step-by-step explanation:First of all, recall that if you increase a number C in x%, then you will have [tex]C+\frac{x}{100}C=C(1+\frac{x}{100})[/tex] So increasing a number in x% is equivalent to multiply it by (1+x/100) 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 [tex]\frac{4.8}{365}\%=\frac{0.048}{365}[/tex] daily. So, after 365 days you will have C multiplied by (1+0.048/365) 356 times, that is (1) [tex]C(1+\frac{0.048}{365})^{365}=C(\frac{365.048}{365})^{365}[/tex] 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)[tex]C(\frac{365.048}{365})^{365}=C(1+\frac{x}{100})\Rightarrow x=100[(\frac{365.048}{365})^{365}-1][/tex] Computing this amount, we get x = 4.92 rounded to the nearest hundreth. And the bank is offering an APY of 4.92%