Cryptocurrency Q&A
How does APY pay monthly?
How does APY pay monthly?
Michele
Tue Nov 19 2024
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6 answers
1503
I would like to understand how APY works when it comes to monthly payments. Specifically, I want to know how the annual percentage yield is applied or calculated for monthly payouts.
6 answers
Dario
Thu Nov 21 2024
Each month, this monthly rate is applied to the principal amount, along with the accumulated interest from previous months.
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CryptoLord
Thu Nov 21 2024
This process of monthly compounding continues throughout the entire year.
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SeoulSerenitySeeker
Thu Nov 21 2024
When the interest is compounded on a monthly basis, the effective annual percentage yield (APY) surpasses 1% slightly.
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TopazRider
Thu Nov 21 2024
By the end of the year, the cumulative effect of monthly interest additions leads to an APY that approximates 1.01%.
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Carlo
Thu Nov 21 2024
To derive this figure, we utilize the monthly interest rate. This rate is obtained by dividing the annual interest rate by 11.
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