what does a 4.5% APY mean?

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how would i calculate that?

2007-08-13 12:06:53 · 2 answers · asked by yadi 2 in Business & Finance ➔ Personal Finance

It is annual percentage rate. If you invest $100 in a bank that pays a 4.5% APY, you will have $104.50 in one year.

2007-08-13 12:15:08 · answer #1 · answered by regerugged 7 · 0⤊ 0⤋

APY is annual percentage yield. It is almost identical to the interest rate, but includes the effect of compounding and any expenses.

2007-08-13 20:25:33 · answer #2 · answered by PersonalFreedom 4 · 1⤊ 0⤋