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APR (annual percentage rate) and APY (annual percentage yield) differ because APY accounts for compounding. APY is always higher and shows the true return on savings or cost of credit.

공식

APY = (1 + APR/n)ⁿ - 1, where n is compounding frequency per year

단계별 가이드

  1. 1Enter APR as a decimal
  2. 2Select compounding frequency (daily, monthly, quarterly, annual)
  3. 3Calculate APY using the formula

풀어진 예시

입력
APR = 5%, daily compounding
결과
APY ≈ 5.127%
(1 + 0.05/365)³⁶⁵ - 1

피해야 할 일반적인 실수

  • Treating APR and APY as equivalent
  • Wrong compounding frequency

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