From an investor's point of view what annual compounding frequency is best?

Question

Quizplus · Accepted Answer

From an investor's point of view, the annual compounding frequency that is best is the one that maximizes the investment's growth rate over time. The more frequently interest is compounded, the better the growth rate will be. Therefore, the best choice is A) Daily because it allows for interest to compound every day, resulting in the highest potential growth rate.

From an Investor's Point of View What Annual Compounding Frequency