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Author: Admin | 2025-04-28
Ie 10/100 =0.1.Add 1 to APR as Decimal = 1 + 0.10 = 1.10Raise to the Power of Number of Compounding Periods per Year: Since compounding is annual, this is 2.Calculation for 2 YearsFirst Year:Interest Earned = Initial Investment × APY as DecimalInterest Earned = ₹10,000 × 0.10Interest Earned = ₹1,000Total Amount at End of Year 1:Total Amount = Initial Investment + Interest EarnedTotal Amount = ₹10,000 + ₹1,000Total Amount = ₹11,000Second Year:Interest Earned = Total Amount at End of Year 1 × APY as DecimalInterest Earned = ₹11,000 × 0.10Interest Earned = ₹1,100Total Amount at the end of Year 2:Total Amount = Total Amount at the end of Year 1 + Interest EarnedTotal Amount = ₹11,000 + ₹1,100Total Amount = ₹12,100The key difference between APR and APY lies in how they account for interest. APR represents a simple interest rate that does not consider the effects of compounding, leading to straightforward interest calculations over a given period. For the same investment and rate, the APY calculation shows a higher return due to compounding. Over two years, the same ₹10,000 investment results in ₹2,100 total interest, bringing the final amount to ₹12,100.Thus, APY provides a more accurate representation of potential returns when interest is compounded, typically resulting in higher earnings than APR for the same rate and period.How to Use Mudrex Earn Feature to Stake Your Crypto HoldingsMudrex Earn allows you to Stake your Crypto Holdings in your wallet and Earn Crypto Rewards on the Coins locked up in Your
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