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Annual Percentage Yield(APY)


DEFINITION OF ANNUAL PERCENTAGE YIELD (APY)

The annual rate of return on an investment. Example: A $1,000 investment at 10% per year earns $100 in one year, and has an APY of 10%. Example: A $1,000 investment at 5% per half-year earns $102.50 in one year, and has an APY of 10.25%.


 

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