connoisseurs jewelry wipes wholesale What does APY in the bank mean?

jewelry guess wholesale APY means the annual income of deposits.
apy, when calculating, you can compound interest (Monthly), quarrelly, and half a year of compound interest ().
annual yields deposit annual income.
is opposite to APR, which is Annual Rates nominal annual interest rate.
For example, suppose you save 10,000 yuan with APR 5%, and the interest is only one year, then you will get interest of 500 yuan a year later.
On the other hand, assuming the interest is paid monthly. This means that 5%APR will be divided into 12 periods, 0.42%per period. After the first month, you will receive 10042 yuan. In the second month, 0.42%interest will be calculated at 10042, and so on.
thus, although APR is 5%, in fact, you have received 512 yuan after a year. This means that APY is 5.12%.
Extension information:
Features:
1. The income is based on the economic business actual in the enterprise. Those.
The economic business includes both external transactions and internal transactions. The business activities with the outside world transfer the assets or liabilities of the enterprise. Because it is usually a direct currency income and expenditure, its measurement is generally accurate. The use or transfer of assets within the enterprise is usually uncertain because of its direct currency income and expenditure.
The value changes caused by market price or expected price change according to the traditional accounting viewpoint does not include the list of internal asset transfer. When transactions occur, the price of old assets is usually transferred to new assets, which is a trading method for measurement income. The trading law naturally derives the procedure of determining the income during sales or transactions and the cost transfer practice in accounting.
2. The income is based on the assumptions of the accounting stages. It refers to the production and operation results of an enterprise during a certain period of specific periods. Early accounting income was calculated based on the cash receipts and payment system, while modern accounting returns divided the current income and expenses according to the right and responsibilities, and calculated after the proper ratio was performed. However, the income determined by the cash system is easier to be accepted by users.
3. The cost of calculating the income is included in the historical cost. Since the assets of enterprises in the current accounting practice are priced at historical costs, the consumption cost derived by the trading law is naturally the transfer of historical costs. Therefore, as one of the important factor in determining the income is also a historical cost.
4, the determination of income must follow the principle of income confirmation. The current accounting practice and the law of benefits on the income are still: only after the relevant conditions with the increase in asset value can be met can it generate income. Investigation and value -added must be able to be measured objectively, and it is determined or unchanged. It must also be confirmed by some economic business or accounting matters.
, that is, the determination of income should be based on the following two principles: the principle of implementation of the revenue determination and the stable principle of determining the income. According to the principles of revenue confirmation, corporate income should be divided into operating income and profit or loss.
The determination of operating income must be after critical matters such as commodity or labor sales, and the profit and loss of profit and loss refers to the profit or loss of the assets, and the increasing profit and loss caused by the changes in prices will not be confirmed.
In the principle of stability determined by the income, when there are multiple accounting methods for a certain economic business of an enterprise, you should choose the method that will not overestimate the income. Two aspects.
5. The income depends on the reasonable ratio of the period of income and expenses. The cost that is irrelevant to the current period should be converted as the cost of the asset to the future period.
6. The principle of caution of the income is constrained. According to the principle of caution, when there are multiple accounting methods for a certain economic business to choose from, it should be selected to choose from neither overestimated nor derogation. Enterprises manipulate profitability to pursue uniform profits. Most of them adopt a method of overestimating income, and subjectively choose to arrange for value -added.
Reference information Source: Baidu Encyclopedia — APY