Convert the given interest rate to the APR

7% compounded daily

annual interest rate is 7.25 %

Step-by-step explanation:

Given data

rate = 7% compounded daily

to find out

APR

solution

we have given rate 7 % compounded daily

so we convert it annually by dividing 365

we consider in 1 year 365 days

rate = 7% = 0.07/365

so annual interest rate is (1+r) ^n - 1

put the value of rate r here

annual interest rate = (1+r) ^n - 1

annual interest rate = (1+0.07/365) ^ (365) - 1

annual interest rate = (1.000191781) ^ (365) - 1

annual interest rate = 1.072500 - 1

annual interest rate = 0.072500

annual interest rate is 7.25 %