Duke's Fuqua School of Business
Annual percentage rate (APR): The period- ic rate times the number of peri- ods In a year. For example, a 5% quarterly return has an APR of 20%. Annual percentage yield (APY): The effec- tive, or true, annual rate of return. The AP Y is the rate actually earned or paid in one year, taking into account the affect of com- pounding. The APY is ... ................
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