The formula to calculate the Annual Percentage Yield (APY) is:
\[ APY = \left(1 + \frac{r}{n}\right)^n - 1 \]
where:
Let's say you have an interest rate of 2% compounded semi-annually (twice a year):
\[ APY = \left(1 + \frac{0.02}{2}\right)^2 - 1 = 0.0201 = 2.01\% \]
Therefore, the APY for this investment is 2.01%.