Savings compounded ____________ would have the highest effective yield

Question

Quizplus · Accepted Answer

Savings that are compounded daily will have the highest effective yield because interest is being calculated and added to the account balance more frequently, resulting in more interest earned over time. The more frequently interest is compounded, the higher the effective yield will be. Therefore, daily compounding will result in the highest effective yield.

Savings Compounded ____________ Would Have the Highest Effective Yield