Therese made an investment of $$1,000$ into an account that pays a $10\%$ annual interest rate which is compounded quarterly. At the end of the $12-$month period, Therese earned $$103\mathrm{.}81$ in interest on her $$1,000$ investment. She calculates her annual percentage yield $($APY$)$ to be $10\mathrm{.}38\%.$ This is an example of how interest is:compounded.

the same as the annual percentage rate $($APR$).$

effected by the annual percentage yield $($APY$).$

part of the truth in savings act.