The maximum rate of return that can be earned for a given rate of interest occurs when interest is compounded
A) daily.
B) monthly.
C) continuously.
D) annually.

Name: The maximum rate of return that can be earned for a given rate of interest occurs when interest is compounded A) daily. B) monthly. C) continuously. D) annually.
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Question

Quizplus · Accepted Answer

Continuous compounding results in the highest rate of return because interest is calculated and added to the principal an infinite number of times per year.

The Maximum Rate of Return That Can Be Earned for a Given