Respuesta :
A. annual compounding
The interest rate is lower as it is compounded annually
The interest rate is lower as it is compounded annually
Answer;
Annual compounding
Explanation;
Annual compounding is a method of calculating and adding interest to an investment or loan once a year rather than for another period.
This is done in compound interest, which is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or a loan.
Using an annual compounding will prompt her to pay less interest compared to other periods.
Annual compounding
Explanation;
Annual compounding is a method of calculating and adding interest to an investment or loan once a year rather than for another period.
This is done in compound interest, which is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or a loan.
Using an annual compounding will prompt her to pay less interest compared to other periods.