ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?
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Compounding 1 time a year
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Compounding 4 times a year
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Compounding monthly
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Compounding daily
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Explanation:
Detailed explanation-1: -The Power of Compounding Interest 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: -Daily compounding interest is the daily interest earned on your savings account balance after interest from the previous day is added.
Detailed explanation-3: -UFB Direct-4.55% APY. Popular Direct-4.40% APY. MySavingsDirect-4.35% APY. Bask Bank-4.25% APY. Bread Savings-4.25% APY. Salem Five Direct-4.10% APY. TAB Bank-4.06% APY. CIT Bank-4.05% APY. More items
There is 1 question to complete.