Cryptocurrency Q&A
How to convert APY to interest rate?
How to convert APY to interest rate?
Stefano
Tue Nov 19 2024
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5 answers
1542
I want to understand how to convert Annual Percentage Yield (APY) to a simple interest rate. I'm looking for a clear explanation or a formula that can help me make this conversion.
5 answers
Sara
Thu Nov 21 2024
A theoretical annual percentage yield (APY) of 5.00% equates to an interest rate of 4.88%. This rate is used to determine the interest accrued over a given period.
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SumoHonorable
Wed Nov 20 2024
To calculate the interest for a specific period, one needs to use the formula: account balance multiplied by the interest rate, and then multiplied by the number of days in the period, divided by 365. This formula ensures that the interest is calculated accurately for any time frame.
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Pietro
Wed Nov 20 2024
For example, if an account has a balance of $10,000 and the interest rate is 4.88%, the interest accrued for one day can be calculated as follows: $10,000 multiplied by 0.0488, and then multiplied by (1/365).
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DigitalLord
Wed Nov 20 2024
Performing the calculation, we find that the interest accrued on the first day is $1.34. This amount represents the earnings from the account for that single day.
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CryptoElite
Wed Nov 20 2024
BTCC is a prominent cryptocurrency exchange that offers a range of services to its users. Among these services are spot trading, futures trading, and a wallet for storing digital assets.
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