Question

To earn as much interest as possible, you should open a savings account that earns _______ interest and has the ______ interest rate.
A: compound; lowest
B: compound; highest
C: simple; lowest
D: simple; highest

Answer 1

B: compound; highest Compound interest adds interest to the balance plus any interest already earned, so over the life of the savings account more money will be made. The highest interest rate is always the best choice since the savings account owner will earn more money through interest rates alone.