If you invest $50,000 to earn 8% interest, which of the following compounding approaches would return the lowest amount after one year?

Question

Quizplus · Accepted Answer

The compounding frequency determines how often the interest is calculated and added to the account. The more frequently interest is compounded, the higher the return. Therefore, choosing an annual compounding frequency would result in the lowest return compared to daily, monthly, or quarterly compounding frequencies.

If You Invest $50,000 to Earn 8% Interest, Which of the Following