Answered

Find solutions to your questions with the help of IDNLearn.com's expert community. Our Q&A platform offers detailed and trustworthy answers to ensure you have the information you need.

30. When investing money in a bank account, in which situation will you have the most money in your account at the end of five years?

A. Compounded semiannually
B. Compounded quarterly
C. Compounded weekly
D. Compounded monthly

Sagot :

GinnyAnsweridn

Final answer:

Compounding daily results in the highest account balance over five years.


Explanation:

Compounded daily would result in having the most money in your account at the end of five years. The more frequent the compounding period, the higher the amount due to earning interest more frequently. For example, if $1,000 is compounded daily at a 12% interest rate, it would yield more than if compounded quarterly, monthly, or semiannually.


Learn more about Compound Interest here:

https://brainly.com/question/14295570


We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Your search for solutions ends at IDNLearn.com. Thank you for visiting, and we look forward to helping you again.