What is the process for calculating the APY from the APR in the context of digital currencies?

1 answers

• May 06, 2022 · 3 years ago
  The process of calculating the APY from the APR in the context of digital currencies involves a few simple steps: 1. Convert the APR to a decimal by dividing it by 100. 2. Add 1 to the decimal APR. 3. Raise the result to the power of the number of compounding periods in a year. 4. Subtract 1 from the result. 5. Multiply the result by 100 to get the APY as a percentage. For example, if the APR is 5% and the compounding period is daily, the calculation would be: 1. 5% / 100 = 0.05 2. 0.05 + 1 = 1.05 3. 1.05^365 = 628.8946268 4. 628.8946268 - 1 = 627.8946268 5. 627.8946268 * 100 = 62789.46268% Hence, the APY in this case would be approximately 62789.46%.
  663

  332