# APY Calculator

APY Calculator

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## What is APY?

APY stands for Annual Percentage Yield and is a measure of the total return on an investment over a period of one year. It is calculated by taking the total amount of interest earned on an investment and dividing it by the principal amount of the investment. APY is a useful tool for comparing different investments and can help investors make informed decisions about where to put their money.

## What is APY Calculator?

A APY Calculator is a tool used to calculate the annual percentage yield (APY) of an investment. It takes into account the principal amount, the interest rate, and the number of compounding periods to calculate the APY.

## How to Calculate APY?

APY stands for Annual Percentage Yield and is the rate of return on an investment over a period of one year, taking into account the effect of compounding interest. To calculate APY, use the following formula: APY = (1 + (r/n))^n – 1 Where r is the stated interest rate and n is the number of compounding periods per year. For example, if an investment pays a 5% interest rate compounded monthly, the APY would be calculated as follows: APY = (1 + (0.05/12))^12 – 1 = 0.0512 = 5.12%

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