ZALIS GLOSSARY: annual-percentage-yield-apy


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Annual Percentage Yield - APY

Description of Annual Percentage Yield - APY
The effective annual rate of return taking into account the effect of compounding interest. APY is calculated by:





Notes:
For example, a 2% per month rate has an yearly APY of 26.8%. This differs from APR, which does not take compounding into account.