finance
 






 

Question by  rhanaway (14)

What is an annual percentage yield?

 
+7

Answer by  gk215 (25)

Annual percentage yield is your rate of return from investing for one year, including compounded interest. A bank may offer a stated interest rate that differs from the APY, because the APY assumes all interest paid is reinvested and interest is compounded.

 
+5

Answer by  Ron27 (465)

An Annual Percentage Yield (apy) is the amount of interest that money will make, compounded according to the bank's policy. For example, if you put $100 into an account that pays 3% interest and has a 3.2% apy, that means that if you leave your $100 in for a year, with compounded interest, you will have $103.20 after a year.

 
You have 50 words left!