http://mindyourdecisions.com/blog/2007/08/16/what-is-the-difference-between-apy-and-apr-how-is-interest-actually-computed-in-my-savings-account-or-on-my-loan/ Articles on game theory and personal finance Thu, 17 May 2012 07:10:00 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://mindyourdecisions.com/blog/2007/08/16/what-is-the-difference-between-apy-and-apr-how-is-interest-actually-computed-in-my-savings-account-or-on-my-loan/comment-page-1/#comment-13739 Why would CD rates be lower than savings account? - Mind Your Decisions Wed, 04 Apr 2012 05:02:10 +0000 http://mindyourdecisions.com/blog/2007/08/16/what-is-the-difference-between-apy-and-apr-how-is-interest-actually-computed-in-my-savings-account-or-on-my-loan/#comment-13739 [...] can see an example of the higher rates in my 2007 post about APR vs APY. At that time, the ING savings account offered a 5.25% [...] [...] can see an example of the higher rates in my 2007 post about APR vs APY. At that time, the ING savings account offered a 5.25% [...]

]]> http://mindyourdecisions.com/blog/2007/08/16/what-is-the-difference-between-apy-and-apr-how-is-interest-actually-computed-in-my-savings-account-or-on-my-loan/comment-page-1/#comment-12264 Interest calculation from an APY on a bank account - Mind Your Decisions Thu, 10 Nov 2011 05:02:44 +0000 http://mindyourdecisions.com/blog/2007/08/16/what-is-the-difference-between-apy-and-apr-how-is-interest-actually-computed-in-my-savings-account-or-on-my-loan/#comment-12264 [...] Typically the APR is quoted for credit cards, and APY for savings accounts, a practice that I have explained before in this article: APR vs APY: what is the difference?. [...] [...] Typically the APR is quoted for credit cards, and APY for savings accounts, a practice that I have explained before in this article: APR vs APY: what is the difference?. [...]

]]> http://mindyourdecisions.com/blog/2007/08/16/what-is-the-difference-between-apy-and-apr-how-is-interest-actually-computed-in-my-savings-account-or-on-my-loan/comment-page-1/#comment-8824 Credit cards, debit cards, and cash–which way of paying is best? - Mind Your Decisions Thu, 04 Aug 2011 05:17:12 +0000 http://mindyourdecisions.com/blog/2007/08/16/what-is-the-difference-between-apy-and-apr-how-is-interest-actually-computed-in-my-savings-account-or-on-my-loan/#comment-8824 [...] can face late fees and over a 20% APR (this is about a 22% APY; see my interest rate article on how to convert APY and APR). It’s not hard to fall into bad debt–just read some of the comments (smart) young [...] [...] can face late fees and over a 20% APR (this is about a 22% APY; see my interest rate article on how to convert APY and APR). It’s not hard to fall into bad debt–just read some of the comments (smart) young [...]

]]> http://mindyourdecisions.com/blog/2007/08/16/what-is-the-difference-between-apy-and-apr-how-is-interest-actually-computed-in-my-savings-account-or-on-my-loan/comment-page-1/#comment-6390 Presh Talwalkar Mon, 15 Mar 2010 03:39:42 +0000 http://mindyourdecisions.com/blog/2007/08/16/what-is-the-difference-between-apy-and-apr-how-is-interest-actually-computed-in-my-savings-account-or-on-my-loan/#comment-6390 Thanks <b><em>Aisha</b></em>--I will correct the mistake as the 5,300 should be 5,000. Thanks Aisha–I will correct the mistake as the 5,300 should be 5,000.

]]> http://mindyourdecisions.com/blog/2007/08/16/what-is-the-difference-between-apy-and-apr-how-is-interest-actually-computed-in-my-savings-account-or-on-my-loan/comment-page-1/#comment-6376 Aisha Thu, 11 Mar 2010 14:31:22 +0000 http://mindyourdecisions.com/blog/2007/08/16/what-is-the-difference-between-apy-and-apr-how-is-interest-actually-computed-in-my-savings-account-or-on-my-loan/#comment-6376 Thanks for the explanation...it was very helpful. I think there's a minor mistake under compounding interest heading when you say "After one year, the ending balance is $5,618 = $5,300 x (1+12%/2)^2"...either the $5300 should be $5000 (the original principal amount), or there should be no square term as you're calculating using the new amount, as otherwise it comes out to around $5955. Thanks for the explanation…it was very helpful. I think there’s a minor mistake under compounding interest heading when you say “After one year, the ending balance is $5,618 = $5,300 x (1+12%/2)^2″…either the $5300 should be $5000 (the original principal amount), or there should be no square term as you’re calculating using the new amount, as otherwise it comes out to around $5955.

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