most recent 30 from http://www.thedailysaver.com 2010-08-01T07:02:22Z http://www.thedailysaver.com/feeds/question/1 http://www.creativecommons.org/licenses/by-nc/2.5/rdf http://www.thedailysaver.com/questions/1/what-is-the-difference-between-apr-and-apy Bob 2010-01-07T05:42:12Z 2010-01-08T04:23:38Z

<p>As I'm looking into loans, I see some rates quoted in terms of APR and others quoted in terms of APY. What is the difference and what do they mean?</p>

http://www.thedailysaver.com/questions/1/what-is-the-difference-between-apr-and-apy/3#3 Spencer Uresk 2010-01-08T04:23:38Z 2010-01-08T04:23:38Z

<p>For starters, APR stands for "Annual Percentage Rate" and APY stands for "Annual Percentage Yield". APR is the actual rate that is offered, but most places will compound your interest at certain intervals. Compounding essentially means adding the interest you've earned to your balance, which means the next time interest is calculated, that money will cost you interest as well. APY takes this into account.</p> <p>For example, if you are offered an APR of 5%, compounded monthly, this corresponds to a 5.11% APY.</p> <p>The following links offer more details:</p> <p><a href="http://www.investopedia.com/articles/basics/04/102904.asp" rel="nofollow">http://www.investopedia.com/articles/basics/04/102904.asp</a></p> <p><a href="http://www.best-savings-rates.com/apr-apy.php" rel="nofollow">http://www.best-savings-rates.com/apr-apy.php</a></p>