hi, i need some sample question with answers of apy and apr..please..i need to study..thank you very much..love you...god bless you

You need to explain your abbreviations to get information. Please repost with more specific details. Thanks for asking.

APY(annual percentage yield)

Apr(annual percentage rate)

APR = rate during period * number of periods in a year.

for example for a rate of 1% per month
.01*12 = .12 or 12% APR
HOWEVER
APY includes the compounding:
1.01^12 = 1.127 or 12.7 %
So a bank that wants to loan you money may say the APR is 12 even though they compound monthly and in fact the real effect (APY) is 12.7
Now if they compounded WEEKLY
.12/52 = .0023077
(1.0023077)^52 --->12.73 percent
daily would be worse yet

thank you Damon

Hi! I'm glad you're interested in studying the concepts of APY and APR. I have prepared a few sample questions along with their answers to help you understand these terms better. Let's dive in:

Question 1:
What is the formula for calculating the Annual Percentage Yield (APY)?

Answer:
The formula to calculate APY is:
APY = (1 + (Nominal Interest Rate / Number of Compounding Periods)) ^ (Number of Compounding Periods) - 1

Question 2:
Tom invests $5,000 in a savings account with an APY of 4%. How much will he have in the account after 2 years, considering that the interest is compounded annually?

Answer:
To find out the amount after 2 years, we can use the formula for compound interest:
Amount = Principal * (1 + Interest Rate)^Time

In this case:
Principal (P) = $5,000
Interest Rate (R) = 4% = 0.04
Time (T) = 2 years

Plugging these values into the formula:
Amount = $5,000 * (1 + 0.04)^2
Amount = $5,246

Therefore, Tom will have $5,246 in his savings account after 2 years.

Question 3:
What is the Annual Percentage Rate (APR) for a loan of $10,000 with an interest rate of 6% and a term of 3 years?

Answer:
APR is the annualized representation of the interest rate charged for borrowing money. To calculate APR, divide the total interest paid over the loan term by the loan amount, and express it as a percentage.

In this case:
Loan Amount (P) = $10,000
Interest Rate (R) = 6% = 0.06
Loan Term (T) = 3 years

First, find the total interest paid:
Total Interest = Loan Amount * Interest Rate * Loan Term
Total Interest = $10,000 * 0.06 * 3
Total Interest = $1,800

Next, calculate APR:
APR = (Total Interest / Loan Amount) * 100
APR = ($1,800 / $10,000) * 100
APR = 18%

So, the APR for the loan is 18%.

I hope these sample questions and answers help you in your studies! Remember to practice solving more problems to gain a better understanding of APY and APR. If you have any more questions, feel free to ask. Good luck with your studies, and God bless you too!