# APY vs APR #### APR Refers to the simple interest accrued from a particular investment over a 1 year period. #### 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. #### More info Compounded interest: [click me](https://www.investopedia.com/articles/investing/020614/learn-simple-and-compound-interest.asp) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://bitguruen.gitbook.io/bitguru/vaults/apy-vs-apr.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.