Northwest Bank pays a quoted annual (nominal) interest - 11216

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Northwest Bank pays a quoted annual (nominal) interest rate of 4.75%. However, it pays interest (compouned) daily using a 365-day year. What is the effective annual rate of return (APY)?

a. 3.61%

b. 5.02%

c. 4.86%

d. 4.75%

 
Solution Description

Northwest Bank pays a quoted annual (nominal) interest