Question 947754


The maximum possible value for the APY is achieved with continuous compounding, that is, N approaches infinity. APY for continuous compounding is calculated by

{{{APY_CONTINUOUS = e^r - 1}}},

where "{{{e}}}" is the mathematical constant {{{2.718281828459045}}}.
In your case,  APR of {{{6.7}}}%  or as decimal {{{0.067}}} rate compounded continuously has an {{{APY}}} of

{{{APY_CONTINUOUS = e^0.067 - 1 = 0.0692955= 6.92955}}}%.