## Beyond Simple Interest: Why Understanding APY Transforms Your Investments
The annual percentage yield (APY) is much more than a number that appears on your bank statement. It is the true indicator of how much money you can earn on an investment over 12 months, considering the effect of compound interest. While simple interest only calculates earnings on your initial capital, APY also accounts for the interest generated by the interest itself, creating an exponential growth effect over time.
## The Current Context: Why Measuring APY Has Never Been More Important
In 2023, the difference betwe
View OriginalThe annual percentage yield (APY) is much more than a number that appears on your bank statement. It is the true indicator of how much money you can earn on an investment over 12 months, considering the effect of compound interest. While simple interest only calculates earnings on your initial capital, APY also accounts for the interest generated by the interest itself, creating an exponential growth effect over time.
## The Current Context: Why Measuring APY Has Never Been More Important
In 2023, the difference betwe