Created
February 24, 2020 14:54
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Convert between APR & APY yearly returns
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const SECONDS_PER_YEAR = 365.25 * 24 * 60 * 60; | |
const BLOCKS_IN_A_YEAR = SECONDS_PER_YEAR / 14; | |
/** | |
* Formula source: http://www.linked8.com/blog/158-apy-to-apr-and-apr-to-apy-calculation-methodologies | |
* | |
* @param interest {Number} APY as percentage (ie. 6) | |
* @param frequency {Number} Compounding frequency (times a year) | |
* @returns {Number} APR as percentage (ie. 5.82 for APY of 6%) | |
*/ | |
const apyToApr = (interest, frequency = BLOCKS_IN_A_YEAR) => ((1 + (interest / 100)) ** (1 / frequency) - 1) * frequency * 100; | |
/** | |
* Formula source: http://www.linked8.com/blog/158-apy-to-apr-and-apr-to-apy-calculation-methodologies | |
* | |
* @param interest {Number} APR as percentage (ie. 5.82) | |
* @param frequency {Number} Compounding frequency (times a year) | |
* @returns {Number} APY as percentage (ie. 6 for APR of 5.82%) | |
*/ | |
const aprToApy = (interest, frequency = BLOCKS_IN_A_YEAR) => ((1 + (interest / 100) / frequency) ** frequency - 1) * 100; |
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