APR to APY
 

Hi,

i'm looking for two formulas...one that i can insert the APR and get APY,
and vice versa.

thanks!

APR to APY
 

On Jan 3, 8:14*am, Carrie wrote:
i'm looking for two formulas...one that i can insert the APR and get APY,
and vice versa.

Well, there are the EFFECT and NOMINAL functions in the Analysis
Toolpak add-in. But you don't need them. Here are two examples. If
the annual rate is 10% compounded monthly, then the APY is:

=fv(10%/12, 12, 0, -1) - 1

If the APY is 10% due to monthly compounding, then the annual rate is:

=12*rate(12, 0, -1, 1+10%)

Caveat: APR and APY are misused in various ways. I am assuming that
you are talking about investments. If you are talking about loans,
the term APY does not apply, and the term APR is used ambiguously in
the industry. Post back if you are talking about loans.