Question

An account with the same Principal Amount growing at a rate of 5% will grow the

fastest if the account is *
Simple Interest
Compounded Quarterly
Compounded Monthly

Answer 1

Compounded Quarterly

Explanation:

This is because the compound interest equation is dependent on the number of times the amount is compounded per year. Monthly is 12 times per year and quarterly is only 4. Simple interest stays at a linear rate.