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# Auto Compounding Formula

How the APY is Calculated

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

Where:

- A = Total Accrued Amount (principal + interest)
- P = Principal Amount
- r = Rate of Interest for each epoch (3 seconds)
- n = # of epochs

We have:
r = 0.0000811%
3 second = 1 epoch
1 year = 10512000 epochs

So:

$A = P(1 + 0.000000811)^{10512000} = P(1 +5040.3386)$

So it means,

$APY =(A/P -1)*100 = 504033.86\%$

Last modified 7mo ago