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You are opening a savings account that earns compound interest. Which compounding frequency will earn you the most money? 1. compounding 1 time a year 2. compounding 4 times a year 3. compounding monthly
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You are opening a savings account that earns compound interest. Which compounding frequency will earn you the most money?

1. compounding 1 time a year
2. compounding 4 times a year
3. compounding monthly
4. compounding daily

User Martin Blaustein
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4 votes

Answer:

4. compounding daily

Step-by-step explanation:

The higher the compounding rate , the higher the compound interest. Compounding daily would therefore yield the highest amount of money.

I hope my answer helps you

User Saurabh Sengar
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