a bank charges 0.037% per day. What is this as an APR?
well, how many days in a year?
365
so, multiply the daily rate by 365 to get the annual rate.
To calculate the Annual Percentage Rate (APR) using the daily interest rate, you need to multiply the daily rate by the number of days in a year. The formula for converting daily rate to APR is:
APR = (1 + daily rate)^365 - 1
In this case, the daily interest rate is 0.037% or 0.00037. Let's calculate the APR:
APR = (1 + 0.00037)^365 - 1
You can solve this equation using a calculator or a spreadsheet application. The result will be the APR expressed as a decimal. Multiply it by 100 to get the percentage representation.
Please note that this formula assumes that interest is compounded daily for 365 days in a year. Some banks may compound interest more or less frequently, so keep this in mind when calculating APR.