Calculate maturity value and interest earned with any compounding frequency.
The formula is A = P(1 + r/n)^(n×t), where P is the principal, r is the annual interest rate as a decimal, n is the number of compounding periods per year, and t is time in years. Interest earned is simply the maturity value minus the principal.
A = P(1 + r/n)^(n×t), where P is principal, r is the annual rate as a decimal, n is the number of compounding periods per year, and t is time in years. Interest earned is A minus P.
More frequent compounding (monthly vs. annually) produces a slightly higher return for the same nominal rate, because interest starts earning its own interest sooner.
Simple interest is calculated only on the original principal. Compound interest is calculated on the principal plus any interest already earned, so it grows faster over time.