Question

PLEASE HELP ASAP!! CORRECT ANSWER ONLY PLEASE!!!

Which account has the highest annual interest rate?

A. Account 1: Interest is compounded daily at a rate of 5.25%.

B. Account 2: Interest is compounded monthly at a rate of 5.40%.

C. Account 3: Interest is compounded quarterly at a rate of 5.50%.

D. Account 4: Interest is compounded annually at a rate of 5.55%.

Answer 1

The answer for this question is A

Answer 2

A

Explanation:

So we know that B talks of monthly, which is about 30 times less than the daily interest(A).

Next we have quarterly(C), which is every three months. This would be 3 times longer than B, and over 90 times longer than daily(A).

Finally we have D, which is anual interest. Anual is only once a year, which is four times longer than C, 12 times longer than B, and over 360 times longer than A.

Answer:

A is the highest interest rate.

Hope this helps! ;)