APR, APY and annualized return
Hi Fernando, thank's for your comment and the provided website. I have read that one already but couple of minutes ago I found this website:
It is basically a step by step explanation of my formula provided above but in years and not based on exact days but you only have to replace the part at which you divide 1 by the number of years with 365/Number of days and you get your 36%.
HOWEVER, I think this calculated annualized return based on a total percentage increase is different from the APY as for the APY you expect to receive interest on a daily, weekly, monthly or yearly basis which you don't have when you just invest in a stock and hold it for a couple of months or years.
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Hello, I am slightly confused regarding the APR, APY and the annualized return based on an exact number of days.
Assuming a starting balance of 10.000 USD after 1500 days (approx. 4.1 years) the balance increased to 35.000 USD. This is an increase of 250%. I calculate the exact (based on 1500 days) annualized return as follows:
Is it correct that the APR would be the 250% and the APY would be the 36% ?