If a savings account offers a 10% annual interest rate compounded monthly,your actual return will be greater than 10%.

Name: If a savings account offers a 10% annual interest rate compounded monthly,your actual return will be greater than 10%.
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Quizplus · Accepted Answer

Compounding monthly means that the interest is calculated on the principal amount plus any interest earned in the previous month. This leads to the actual return being greater than the stated annual interest rate of 10%.

If a Savings Account Offers a 10% Annual Interest Rate