Savings account A and savings account B both offer APRs of 6%, but savingsaccount A compounds interest semiannually, while savings account Bcompounds interest quarterly. Which savings account offers the higher APY?OA. Savings account B, because it has more compounding periods peryearOB. Savings account B, because it has fewer compounding periodsper yearC. Savings account A, because it has more compounding periods peryearOD. Savings account A, because it has fewer compounding periodsper year
Accepted Solution
A:
A. Savings account B, because it has more compounding periods per year.Example:Interest semiannual1,000×(1+0.06÷2)^(2)=1,060.9interest quarterly1,000×(1+0.06÷4)^(4)=1,061.36.Compare between them and see which one is higherplease bran-list