Question

Anne is comparing savings accounts. One account has an interest rate of 1.2 percent compounded yearly, and one account has an interest rate of 1.2 percent compounded monthly. Which account will earn more money in interest?

the account that earns 1.2 percent compounded yearly
the account that earns 1.2 percent compounded monthly

Answer 1

the account that earns 1.2 percent compounded monthly

Step-by-step explanation:

We are talking about how many money will be earned in interested, which means that the higher percentage in a shorter period of time will earn a higher amount of money.