Final answer:
The compounding option that will yield the least interest revenue in a year is annual compounding, as it compounds just once per year, which is less frequent than any of the other options given. Option E is correct.
Step-by-step explanation:
The question is related to the concept of compound interest, which is when interest is added to the principal of a deposit, resulting in interest earning interest. Given the different compounding options, the one that will return the least amount of interest revenue in a year is the one that compounds the least frequently. To compare the options, we note that the more frequently interest is compounded, the more opportunities for the interest to earn additional interest exist.
The options are:
Quarterly
Bi-weekly
Daily
Semiannual
Annual
Out of these options, annual compounding happens only once a year, thus it offers the least frequent opportunity for interest to be added to the principal within a year, and therefore will produce the least amount of interest revenue relative to the others that compound more frequently.