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How the APY is Calculated
The total accumulated value, including the principal sum
plus compounded interest 
, is given by the formula:
where:
- A is the final amount
- P is the original principal sum
- r is the nomial annual interest rate
- n is the compounding frequency
- t is the overall length of time the interest is applied (expressed using the same time units as r, usually years).
Last modified 11mo ago