What happens to the amount of interest earned when interest is compounded more frequently?

حاصل شدہ سود کی رقم کا کیا ہوتا ہے جب سود کو زیادہ کثرت سے مرکب کیا جاتا ہے؟

Interest earned increases

Interest earned decreases

Interest earned remains the same

Interest earned becomes zero

When interest is compounded more frequently, the interest earned increases.

Because the interest is calculated and added to the principal more often.

It creating a snowball effect that leads to higher earnings over time.