BANKING AFFAIRS

Detailed explanation-1: -The annual percentage yield (APY) is the real rate of return earned on an investment, taking into account the effect of compounding interest. Unlike simple interest, compounding interest is calculated periodically and the amount is immediately added to the balance.

Detailed explanation-2: -An annualised yield is the actual interest rate you get when you book a Fixed Deposit for more than 181 days and on cumulative (compounding) interest concept.

Detailed explanation-3: -The yearly rate of return is calculated by taking the amount of money gained or lost at the end of the year and dividing it by the initial investment at the beginning of the year. This method is also referred to as the annual rate of return or the nominal annual rate.

Detailed explanation-4: -An APR is a number that represents the total yearly cost of borrowing money, expressed as a percentage of the principal loan amount. The APR on a loan or credit card aims to offer a complete picture of how much it costs to borrow money.

Detailed explanation-5: -The annual percentage yield is typically calculated by multiplying the interest rate by the number of compounded periods per year.