APR vs APY

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: https://www.investopedia.com/articles/investing/020614/learn-simple-and-compound-interest.asp#:~:text=Simple%20interest%20is%20calculated%20on,as%20%22interest%20on%20interest.%22‚Äč