Answer:
d. An account earning interest compounded daily
Step-by-step explanation:
An account earning interest compounded daily will have the greatest accumulated value at the end of one year.
Compound interest provides a higher return on value compared to simple interest even much more so when it is done daily.
- Compound interest is an interest accrued on the principal and subsequent interest on capital.
- Simple interest is simply interest on the capital alone.
- The time duration plays an important role.
- A principal compounded daily at a certain rate will yield more value at the end of a year than one compounded weekly, monthly, quarterly or annually.
Therefore, an account earning interest compounded daily will give a better return of value.
