Question

Anthony is deciding between different savings accounts at his bank. He has four options, based on how frequently interest compounds. Which should he choose if he wants the best rate of return on his interest? AAnnual Compounding BMonthly Compounding CSemi-Annual Compounding DDaily Compounding

Answer 1

The best saving account that Anthony should take is letter D, daily compounding. Daily compounding could provide him the best rate of return to his interest and this could provide him the interest that he deserves every time he deposits money on his bank account. This could not only be best in returning his interest but it could also provide the interest he deserves.