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Effective Annual Yield Calculator

Formula

To calculate the Effective Annual Yield (i):

$i = \left(1 + \frac{r}{m}\right)^m - 1$

Where:

An effective annual yield is a measure of the true return on an investment over a time period.

Let's assume the following values:

Using the formula:

$i = \left(1 + \frac{0.05}{4}\right)^4 - 1 ≈ 0.05095$

The Effective Annual Yield is approximately 0.05095 or 5.095%.

Let's assume the following values:

Using the formula:

$i = \left(1 + \frac{0.08}{12}\right)^{12} - 1 ≈ 0.0830$

The Effective Annual Yield is approximately 0.0830 or 8.30%.