effective annual return

effective annual return
rate of profit yielded by an investment over the course of a year

English contemporary dictionary. 2014.

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  • Annual percentage yield (APY) — The effective, or true, annual rate of return. The APY is the rate actually earned or paid in one year, taking into account the affect of compounding. The APY is calculated by taking one plus the periodic rate and raising it to the number of… …   Financial and business terms

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