Effective rate (APY) is: Never related to compound table Interest for one year divided by annual rate Interest for one year divided by principal for 2 years Interest for one year divided by principal None of these

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2016-04-25 09:07:24

APY=annual percentage yield is the rate we get for depositing an amount for a year after taking into account compound interest. Therefore it is the interest for one year divided b the principal.

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