> For the complete documentation index, see [llms.txt](https://yieldboxio.gitbook.io/yieldbox/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://yieldboxio.gitbook.io/yieldbox/apy-explained/highest-fixed-1-171-519.1-apy-in-crypto/how-the-apy-is-calculated.md).

# How The APY Is Calculated

### Compound Interest Equation

$$
A = P(1 + r)^n
$$

Where:

* A = Total Accrued Amount (principal + interest)
* P = Principal Amount
* r = Rate of Interest for each epoch (5 minutes)
* n = # of epochs

We have:\
r = 0.00902%\
5 minutes = 1 epoch\
1 year = 105120 epochs

So:

<div align="left"><img src="https://1546433483-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvpV9ysjNmo9YAbiwClZL%2Fuploads%2F9j0a6MSNXoTG3viNVJ3I%2FScreen%20Shot%202022-04-25%20at%205.40.50%20PM.png?alt=media&amp;token=5e1c4c68-fdd2-4a2f-9843-63ba9e857eab" alt=""></div>

So it means,

<div align="left"><img src="https://1546433483-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvpV9ysjNmo9YAbiwClZL%2Fuploads%2FldsiZjTTCBc0UsZng4pB%2FScreen%20Shot%202022-04-25%20at%204.43.37%20PM.png?alt=media&amp;token=bb6726a2-858c-4394-aa75-0d494f67f88e" alt=""></div>

Same goes to other time periods.

![](https://1546433483-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvpV9ysjNmo9YAbiwClZL%2Fuploads%2FilEGpEYPStPLq41LLwx2%2FScreen%20Shot%202022-04-25%20at%205.39.04%20PM.png?alt=media\&token=8cd50a42-2a11-4950-a831-ecfa65c26749)

0.00902% per block (5 minutes)\
0.108% per hour \
2.6% per day \
19.7% per week \
116% per month \ <mark style="color:blue;">1,171,519.7% per year (APY)</mark>

### <mark style="color:blue;">Example:</mark>

**P =&#x20;**<mark style="color:blue;">**$1,00**</mark>

**A = (After 1 year) =&#x20;**<mark style="color:blue;">**$ 1,171,619.75**</mark>

<mark style="color:blue;">**In addition 7% BUSD reflection rewarded every hour**</mark>&#x20;