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Hello phlik,

Annual Percent Yield (APY) is the percentage increase in value of an investment over one year taking into consideration the effects of compounding.

That is, APY is the total interest (or dividends) you will receive over one year if you do not withdrawal any of your principle or any of your earned interest (or dividends.)

The APY is higher than the Periodic Rate of Return (the interest you will earn each month) because the APY takes in consideration that you are earning interest on your interest.

Hope This Helps,

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