Question

Carol has a choice of an account that compounds quarterly and an account that compounds daily.

If they both have the same interest rate, which will earn more interest?


The account that compounds quarterly.


The account that compounds daily.


They will both earn the same interest

Answer 1

Answer: The account that compounds daily.

Step-by-step explanation: If you reinvest your money more frequently, then you will also be able to earn interest on the interest that you earned the previous day and so on.