barca opened up a compounded daily interest account that paid 3.03% annual interest. what is the total…

barca opened up a compounded daily interest account that paid 3.03% annual interest. what is the total percent yield for this account after 8 years. round your answer to the nearest tenth of a percent. do not input the percent sign. example: 15.2 the following is the % yield function where: • r is the annual interest rate, • n is the number of compounding times per year • t is the number of years %yield = (1 + \\frac{r}{n})^{n\\cdot t}-1

barca opened up a compounded daily interest account that paid 3.03% annual interest. what is the total percent yield for this account after 8 years. round your answer to the nearest tenth of a percent. do not input the percent sign. example: 15.2 the following is the % yield function where: • r is the annual interest rate, • n is the number of compounding times per year • t is the number of years %yield = (1 + \\frac{r}{n})^{n\\cdot t}-1

Answer

Explanation:

Step1: Identify the values of r, n, and t

$r = 0.0303$ (3.03% converted to decimal), $n=365$ (compounded daily), $t = 8$.

Step2: Substitute values into the formula

$\text{%Yield}=\left(1+\frac{0.0303}{365}\right)^{365\times8}-1$. First, calculate $\frac{0.0303}{365}\approx0.000083$. Then $1+\frac{0.0303}{365}=1 + 0.000083=1.000083$. Next, calculate $365\times8 = 2920$. So we have $(1.000083)^{2920}-1$. Using a calculator, $(1.000083)^{2920}\approx1.271$. Then $1.271-1 = 0.271$.

Step3: Convert to percentage and round

$0.271\times100 = 27.1$.

Answer:

27.1