Year number is 1 and will not affect them
Chat with our AI personalities
when interest compounds annually , I believe.
In short, stated rate does not include interest income made by (usually) monthly compounding of interest income. This means that if you multiply your initial investment by APY, you will get exactly the amount you will have after one year, provided you did not add or withdraw any funds. If you multiply your initial investment by Stated Rate you will get amount lower that what you would be able to withdraw after twelve months.
By using an APY calculator, one can determine their interest earnings alongside the duration of months that the funds will continue to be invested. These calculators can be found on My Bank Tracker.
1% of 50,000 is 500.
{| |- | $244,334 |}