Why are there two APY function keys on the PROM Truth-in-Savings Compliance tool?
The [APY/%] key is used to compute the A.P.Y. for non-time (no maturity date) accounts such as savings accounts, N.O.W. accounts, etc. The term is assumed to be 1 year, and no principal amount is entered. You can calculate the A.P.Y. from an interest rate using any compounding interval, and you can calculate the interest rate from the A.P.Y. The [APY/Int] key is used to compute the A.P.Y. for time accounts (with a specified maturity date), such as certificates of deposit. You can use the [APY/Int] routine to compute the A.P.Y. for advertising, lobby signs, and account disclosures (see next question), and to compute the A.P.Y. earned for periodic statements.
