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16 July, 05:49

A $1000 dollar deposit is put into a savings account. Which of the following compound frequencies will ensure highest interest earned in 5 years?

A. Quarterly

B. Annually

C. Monthly

D. Semiannually

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Answers (1)
  1. 16 July, 07:37
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    B - Monthly

    Because the more compounds per year the better the outcome.

    Quarterly = 4 times per year

    Annually = 1 time a year

    Semiannual = 2 times per year

    Monthly = 12 times per year
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