Bank offers 6.35% annual interest rate compounded daily. What is the apporoximate APY?

Question

how do i calculate this? Formulas?

Answer 1

You can calculate this using the APY formula given: APY = ((1+r/n)^(n)) - 1

Where r is your annual interest rate and n is the number of times it is compounded per year. 

So for n,

annually: n=1

quarterly: n=4

daily: n=365.

In your question, n=365 because it is compounded daily. 

Hope this helps!