BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -In savings accounts, interest can be compounded, either daily, monthly, or quarterly, and you earn interest on the interest earned up to that point. The more frequently interest is added to your balance, the faster your savings will grow.
Detailed explanation-2: -Annual compounding: Interest is calculated and paid once a year. Quarterly compounding: Interest is calculated and paid once every three months.
Detailed explanation-3: -With most savings accounts and money market accounts, you’ll earn interest every day, but interest is typically paid to the account monthly.
Detailed explanation-4: -You’ll earn interest every day, but it is usually paid back into your savings account monthly, although some accounts may pay quarterly or even annually. If unsure, your provider will be able to tell you how often interest is paid on your account.
Detailed explanation-5: -Yes, the monthly interest credit facility is applicable to all types of savings accounts.