Step 1 : Introduction to the question "You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?"
...A.) Compounding 1 time a year B.) Compounding 4 times a year C.) Compounding monthly D.) Compounding daily* - When interest is compounded on a daily frequency it is known as daily compound interest. In daily compounding interest is charged both on the principal as well as the accumulated interest. ... For example, the interest amount for daily compounding will be higher than the interest amount for quarterly compounding.
