Ralph kramer ingested $11,000 in a certificate of deposit for 1 year. the certificate earns interest at an annual rate of 5.75 percent compounded daily. the amount per $1.00 is 1.059180. what is the effective annual yield? show work

5.91%

Step-by-step explanation:

We are given an investment deposited fro 1 year compounded daily at an annual interest rate of 5.75%.

Compounding period per year, n: 365

The effective annual yield can be calculated by the following formula:

Effective Annual Yield =

where n = 365

Interest rate, r= 5.75% = 0.0575

= 0.059

The annual effective yield is 5.91%

rounding to the nearest thousandth would be 452,000

step-by-step explanation:

you can add the two numbers and divide the result by 2. or you can find the gap between the two numbers and add half of this to the smaller number.