Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. Compound interest can be thought of as "interest on interest," and will make a deposit or loan grow at a faster rate than simple interest, which is interest calculated only on the principal amount. The rate at which compound interest accrues depends on the frequency of compounding; the higher the number of compounding periods, the greater the compound interest.Let Principal = P , Rate = R % per annum and Time = n years.
Note- if interest is calculated annually, then compound interest is equal to simple interest
Note-When the interest is compounded (interest calculated and added to principal) half yearly, then the rate will be half and time will be twice.
Note-when the interest is compounded quarterly, then rate will be quarter and time will be 4 times.
Note-When the interest is compounded monthly,