Asked by Athena Colleen on Apr 23, 2024
Which interest rate would you prefer to pay on a loan: 9% compounded monthly, 9.1% compounded quarterly, 9.2% compounded semiannually, or 9.3% compounded annually?
Compounded Quarterly
The calculation of interest where the interest is added to the principal every quarter, thus the total amount of interest earned increases each quarter.
- Investigate and identify the superior interest rates for loans and investments, with regard to their compounding periods.
Learning Objectives
- Investigate and identify the superior interest rates for loans and investments, with regard to their compounding periods.