Question

How many times will interest be added to the principal in 1 year if the interest is compounded annually?

Answer 1

If it's compounded annually, it basically means the interest rate will apply once a year.

So the answer will be 1.

Answer 2

Once.

Explanation:

We are asked to find the number of times interest will be added to the principal in 1 year if the interest is compounded annually.

We know that compounding annually means that interest is added to the principal once in a year.

Therefore, the interest is added once to the principal in 1 year if the interest is compounded annually.