APR = Annual Percentage Rate; APY = Annual Percentage Yield.
This is a tough question!!
To get the APY we use the compounding formula (A = P(1+r/n)^nt) and put $1 in
for the principal and see what our final amount is at 19.07% after a year.
A = 1(1+.1907/12)^12
A= 1.0159^12
A= 1.2083 This means
that we paid 0.2083 on our dollar after a year which means the APY is 20.83%.
