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how to compute annual percentage yield. Here are the steps to follow for this annual percentage yield calculator. Dividend yield equals the annual dividend per share divided by the stocks price per share.
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An account states that its rate is 6 compounded monthly. The calculation of the annual percentage yield is based on the following equation. The rate or r would be06 and the number of times compounded would be 12 as there are 12 months in a year.
The algorithm behind this annual percentage yield APY calculator is based on the APY formula explained below that considers the annualnominal interest rate offered by the financial institution and the compounding frequency of the product you analyze.
Then select the Compounding option from the drop-down menu. When we put this into the formula we have After simplifying the annual percentage yield is shown as 6168. Annual percentage yield APY is calculated by using this formula. Then select the Compounding option from the drop-down menu.
