Question

If you are borrowing money and paying interest would you prefer an interest rate that compounds annually quarterly or daily

Answer 1

As the borrower, you would prefer an interest rate does not compound, because this minimizes interest earned; ie: a simple interest rate.

As a lender, among the three options presented, you would prefer an interest rate that compounds daily because this maximizes interest earned.

Answer 2

Interest rate because if you do daily yes you will have more money at the time but I interest will add up over time and you will double the amount then a daily