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APR to APY Converter ची गणना कशी करावी

APR to APY Converter म्हणजे काय?

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.

सूत्र

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

चरण-दर-चरण मार्गदर्शक

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

Worked Examples

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

Common Mistakes to Avoid

  • Treating APR and APY as equivalent
  • Wrong compounding frequency

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