WebThe formula to calculate APY is: APY = (1 + r/n)ⁿ - 1 Where: r is the annual interest rate n is the number of times interest is compounded per year Using the APY above, 5% (0.05), and if we assume daily compounding (n=365), the APY calculation would be: APY = (1 + 0.05/365)^365 - 1 APY = 0.050972 or 5.0972% Web11 apr. 2024 · A = P (1+r/n) (nt) A is the total that your account will be worth at the end of the term, including the amount you put in. P is the principal, or the amount you deposited when you opened the account. R is the rate, or annual interest rate, expressed as a decimal. If the interest rate is 1.25% APY, r is 0.0125.
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