Question

The best way to achieve significant increases in interest accrual in a savings account is through-----------

A) Increases in interest
B)Increases in principal
C) Increases in time
D) Compounding

Answer 1

Increases in Principal is the correct answer

Explanation:

Answer 2

Option D - Compounding

Explanation:

We have to find : The best way to achieve significant increases in interest accrual in a savings account is through ?

Solution :

From the options given,

Increases in principle and increases in time will not give the result, because we are talking about a fixed amount of money for a fixed time.

Also, increases in interest is not in our hand.

So, only we can do is compounding.

Here, in same amount of money and time, the rate of interest will automatically increase.

Therefore, The correct option is D i.e, Compounding.

The best way to achieve significant increases in interest accrual in a savings account is through compounding.