APY, APR help?

Question

Does APY and APR mean the same thing? Where do you find how often the account is compounded?

Answer 1

"Annual Percentage Yield (APY) expresses an annual rate of interest taking into account the effect of compounding. It is always greater than or equal to the Annual percentage rate (APR)."

Answer 2

No, they are close. APR calculates simple interest and APY takes compounding into consideration. Both are based off of the assumption that the investment exists for the period of a year (no this doesn't mean you are obligated to KEEP it for a year just a basis for calculation). Banks will state the rate as APY. If you want specific details on the bank, read the small print. It is usually posted on the bank's website, but you can also request it in person. Banks are required to keep this information on hand and deliver it upon account opening. Hope this helps!

Answer 3

How often it is compounded will be on your initial paperwork or you can just call them and ask.
APY & APR will be the same if you withdraw the interest everytime it is paid or if it is just paid annually.
If it is compounded monthly, and you leave the interest in then the APY will be higher.

Answer 4

Dividends are profits distributed to the shareholders EPS is the amount of income the company has made. You can determine how well a company is doing by the EPS. Depending on what the investment goal is for a particular company determines the dividend payouts. If the company is looking to grow its shareprice it won't distribute money in a dividend, however the EPS will be high.

Answer 5

I don't know why I am answering this question...i don't know if they mean the same thing... but, anytime you sign a contract it is stated (usually in small print) how the interest is compounded. I think it is the law now to disclose such info.