[Answer] Anthony is deciding between different savings accounts at his bank. He has four options, based on how frequently interest compounds. Which should he choose if he wants the best rate of return on his interest?

Step 1 : Introduction to the question "Anthony is deciding between different savings accounts at his bank. He has four options, based on how frequently interest compounds. Which should he choose if he wants the best rate of return on his interest? "

...A.) Monthly Compounding B.) Daily Compounding* C.) Annual Compounding D.) Semi-Annual Compounding - Compounding is the process of charging interest on the interest generated on an account. If interest is compounded daily that means that the calculation occurs each day of the year (365 days). If interest is compounded yearly, then n = 1; if semi-annually, then n = 2; quarterly, then n = 4; monthly, then n = 12; weekly, then n = 52; daily, then n = 365; and so forth, regardless of the number of years involved.

[Answer] John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions would enable him to earn MORE interest?

Step 1 : Introduction to the question "John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions would enable him to earn MORE interest? "

...A.) Selecting an account with a high interest rate. B.) Leaving his money in the account for long period of time. C.) Transferring money into his checking account each month. D.) Both A & B*

[Answer] To earn as much interest as possible, you should open a savings account that earns _______ interest and has the ______ interest rate.

Step 1 : Introduction to the question "To earn as much interest as possible, you should open a savings account that earns _______ interest and has the ______ interest rate. "

...A.) compound; lowest B.) compound; highest* C.) simple; lowest D.) simple; highest

[Answer] Which of the following is a type of savings vehicle?

Step 1 : Introduction to the question "Which of the following is a type of savings vehicle?"

...A.) Certificate of Deposit B.) Money Market Account C.) Checking Account D.) Both A & B* - A savings vehicle is a bank account that's used to hold your savings. The basic saving vehicles include but are not limited to: savings accounts, money market accounts, and certificates of deposit. Savings Account. Savings accounts are the most basic kind of savings vehicle.

[Answer] Which of the following is generally true about savings vehicles?

Step 1 : Introduction to the question "Which of the following is generally true about savings vehicles?"

...A.) Savings vehicles are only useful for long-term investments. B.) People should evaluate different forms of savings vehicles based on their needs.* C.) Savings vehicles are never insured. D.) All of the above - A savings vehicle is a bank account that's used to hold your savings. The basic saving vehicles include but are not limited to: savings accounts, money market accounts, and certificates of deposit. Savings Account. Savings accounts are the most basic kind of savings vehicle.

[Answer] You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?

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.