2006-06-16 03:51:28 · 3 answers · asked by Florence D 1 in Business & Finance ➔ Personal Finance
The effective annual rate of return taking into account the effect of compounding interest. APY is calculated by:
= (1 + periodic rate) # of periods - 1
The resultant percentage number assumes that funds will remain in the investment vehicle for a full 365 days.
2006-06-16 03:56:50 · answer #1 · answered by Neerdowellian 6 · 1⤊ 0⤋
is this for a savings account? you shouldn't have to compute it, the bank should actually tell you. usually in tiny font at the bottom of the screen, as a footnote or something.
they'll be like, 4.50%APY*!!!!!!!
and then really tiny somewhere, *actual interest is 4.3
something like that - I'm just making up the example. or if you call the bank, they'll tell you.
2006-06-16 10:58:32 · answer #2 · answered by Debbie 3 · 0⤊ 0⤋
Not sure, but these sites should help.
2006-06-16 11:00:47 · answer #3 · answered by Miko 2 · 0⤊ 0⤋