when opening a savings account at a bank, which method of computing interest would a person prefer for the…

when opening a savings account at a bank, which method of computing interest would a person prefer for the bank to use because it results in the money earning the most interest?\nsimple interest.\ninterest compounded daily.\ninterest compounded monthly.\ninterest compounded annually.

when opening a savings account at a bank, which method of computing interest would a person prefer for the bank to use because it results in the money earning the most interest?\nsimple interest.\ninterest compounded daily.\ninterest compounded monthly.\ninterest compounded annually.

Answer

Explanation:

Step1: Recall interest - types concept

Compound interest earns interest on principal and previously - earned interest. Simple interest only earns on principal.

Step2: Consider compounding frequency

The more frequently interest is compounded, the more interest is earned. Daily compounding has the highest compounding frequency among daily, monthly, and annual compounding.

Answer:

Interest compounded daily.