Answer:
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 = [tex] (1+\frac{r}{n})^{n}-1[/tex]
where n = 365
Interest rate, r= 5.75% = 0.0575
[tex]=(1+\frac{0.0575 }{365})^{365}-1[/tex]
= 0.059
The annual effective yield is 5.91%
