When it comes to finding the best return on your investment, it’s hard to beat a certificate of deposit (CD). Unlike a savings account, a CD offers a fixed rate of return over a specific time period. This makes it easy to plan for the future and know exactly how much your investment will earn.

To calculate the annual percentage yield (APY) on a CD, you need to know the interest rate and the compounding frequency. The APY is a measure of the effective annual rate of return on a CD, taking into account the effect of compounding.

The compounding …