APY (FDIC)

The Annual Percentage Yield  (APY) calculator computes the Annual Percentage Yield (APY) as it is defined by the US FDIC.

INSTRUCTIONS: Choose the preferred currency units and enter the following:

• (I)  This is the amount of interest earned during the period.
• (n)  This is the number of days in the period.
• (P)  This is the Principal amount .

Annual Percentage Yield (APY): The yield is returned a percentage.

NOTES

The APY is the total amount of interest that would be received on a $100 deposit, based on the annual rate of simple interest and the frequency of compounding for a 365-day period, expressed as a percentage. So, this is the effective rate your compounded earnings would revive over a period of days.  Typically your bank would report this APY for a monthly earning so they can report the earnings over the number of days in a particular month (the term).