Cryptocurrency Q&A
How does APY work?
How does APY work?
Lucia
Tue Nov 19 2024
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5 answers
1011
I want to understand how Annual Percentage Yield (APY) operates. Specifically, I'm curious about its mechanism and how it affects my investments or savings over a year.
5 answers
Carolina
Thu Nov 21 2024
APY serves as a standardized measure of the rate of return.
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SamuraiHonor
Thu Nov 21 2024
It indicates the real percentage of growth earned in compound interest.
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SejongWisdom
Wed Nov 20 2024
This assumes that the money is deposited for a period of one year.
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DigitalLordGuard
Wed Nov 20 2024
The formula used to calculate APY is (1+r/n)n - 1.
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Elena
Wed Nov 20 2024
In this formula, 'r' represents the period rate, and 'n' represents the number of compounding periods.
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