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    Fhough17's Avatar
    Fhough17 Posts: 2, Reputation: 1
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    #1

    Mar 2, 2010, 10:18 AM
    Steps to calculate the APY of 4.6%
    A bank offers an APR of 4.6% compounded monthly
    Fhough17's Avatar
    Fhough17 Posts: 2, Reputation: 1
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    #2

    Mar 2, 2010, 10:21 AM

    A bank offers an APR of 4.6% compounded monthly
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #3

    Mar 2, 2010, 12:21 PM
    APY =

    ... where n is the number of compounding periods per year. And be sure to express APR in decimal form in there.

    Likewise, the resulting answer will be in decimal form.
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