Effective yield on yearly basis at entity in percentage

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Reference no: EM131583965

In the past, interest was paid by financial entities on the basis of ‘day of deposit to day of withdrawal’ implying that interest was credited to an account every day where a financial year is 360 days. A checking account at a financial entity has stated that the nominal interest rate is 1.08% per year and has said interest is credited daily to the balance. What is the effective yield on a yearly basis at this entity in percentage terms with 4 digits after the decimal point? Use discrete compounding for this calculation.

Reference no: EM131583965

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