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On the TI BA plus II , when calculating , APR and APY for given the PV and NPV (after a year)

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When N is equaled to 12 , we get APR and APY when N is set 1 , can somebody explain , how the monthly compounding effect is not being considered by setting N to 12(for APR) and how is considered when N is set to 1(for APY)? What is I/Y on the calculator?

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