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# APR vs. APY

## Annual Percentage Rate (APR)

Refers to the simple interest accrued from a particular investment over a 1 year period.

## Annual Percentage Yield (APY)

Refers to the compounded interest accrued from a particular investment over a 1 year period. APY reflects more accurately the expected yearly returns of that investment. To achieve APY from APR for now, you need to manually compound your earnings daily on FarmHero.
Basically,
$APY = Math. Pow(1+APR/365, 365) - 1$