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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 7mo ago