Comments on: What is the difference between APY and APR? How is interest actually computed in my savings account or on my loan?

By: Interest calculation from an APY on a bank account - Mind Your Decisions

Interest calculation from an APY on a bank account - Mind Your Decisions — Thu, 10 Nov 2011 05:02:44 +0000

[...] 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?. [...]

By: Credit cards, debit cards, and cash–which way of paying is best? - Mind Your Decisions

Thu, 04 Aug 2011 05:17:12 +0000

[...] 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 [...]

By: Presh Talwalkar

Presh Talwalkar — Mon, 15 Mar 2010 03:39:42 +0000

Thanks Aisha–I will correct the mistake as the 5,300 should be 5,000.

By: Aisha

Aisha — Thu, 11 Mar 2010 14:31:22 +0000

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.

By: Charles S. Davis

Charles S. Davis — Wed, 10 Feb 2010 19:10:33 +0000

I have a checking account which quotes a 4.1% yearly yield, They say the interest on the account is calculated using the daily average method and is compounded monthly. Can you give me the equations, and an example showing how this is done?ds

Thank you