Which method of determining interest provides the largest interest amount?
A)LIFO
B)FIFO
C)Day-of-deposit-day-of-withdrawal
D)Minimum balance

Question

Quizplus · Accepted Answer

The day-of-deposit-day-of-withdrawal method calculates interest based on the actual number of days the funds were on deposit. This means that even if a deposit is made halfway through the month, the account holder will still earn interest for the entire month. This method typically provides the largest interest amount compared to other methods such as LIFO or minimum balance. FIFO (first-in-first-out) is not typically used to determine interest as it is a method of inventory management.

Which Method of Determining Interest Provides the Largest Interest Amount