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24 January, 13:44

You invest $1600 in an account paying 5% interest compounded daily. What is the account's effective annual yield? Assume 360 days in a year.

The account's effective annual yield is ___% (Round to two decimal places as needed)

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  1. 24 January, 13:51
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    5.13%.

    Step-by-step explanation:

    Amount accumulated in 1 year

    = 1600 (1 + 0.05/360) ^360

    = $1682.03

    Account's effective annual yield

    = 82.03 * 100 / 1600 %

    = 5.13%.
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