Answer:
3.95%
Step-by-step explanation:
The computation of the APY is shown below:
As we know that
A = P(1 + rate)^n
where,
A = full and Final amount (Principal + Interest )
r = rate of interest
n = time
Now
Let us assume that P = $100.
Now placing the values,
A = $100 × (1 + (3.88% ÷ 365)^365
= $100 × (1 + 0.000106301
)^365
= $100 × (1.000106301
)^365
= $100 × 1.039560407
= $103.9560407
Now the annual percentage yield is
= Amount - principal
= $103.9560407 - $100
= 3.95%
