Answer:
annual interest rate is 7.25 %
Step-by-step explanation:
Given data
rate = 7% compounded daily
to find out
APR
solution
we have given rate 7 % compounded daily
so we convert it annually by dividing 365
we consider in 1 year 365 days
rate = 7% = 0.07/365
so annual interest rate is (1+r)^n -1
put the value of rate r here
annual interest rate = (1+r)^n -1
annual interest rate = (1+0.07/365)^(365) -1
annual interest rate = (1.000191781)^(365) -1
annual interest rate = 1.072500 - 1
annual interest rate = 0.072500
annual interest rate is 7.25 %
