Effective Annual Yield Calculator
Parameter | Description | Example Value |
---|---|---|
Nominal Interest Rate | The stated annual interest rate. | 5% |
Compounding Periods per Year | The number of times the interest is compounded per year. | 4 |
Effective Annual Yield (EAY) | The annual yield expressed as if it were compounded once per year \(\left(1 + \frac{\text{Nominal Interest Rate}}{\text{Compounding Periods per Year}}\right)^{\text{Compounding Periods per Year}} – 1\). | 5.09% |