[Answer] John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions would enable him to earn MORE interest?

Step 1 : Introduction to the question "John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions would enable him to earn MORE interest? "

...A.) Selecting an account with a high interest rate. B.) Leaving his money in the account for long period of time. C.) Transferring money into his checking account each month. D.) Both A & B*

[Answer] To earn as much interest as possible, you should open a savings account that earns _______ interest and has the ______ interest rate.

Step 1 : Introduction to the 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] You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?

Step 1 : Introduction to the question "You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?"

...A.) Compounding 1 time a year B.) Compounding 4 times a year C.) Compounding monthly D.) Compounding daily* - When interest is compounded on a daily frequency it is known as daily compound interest. In daily compounding interest is charged both on the principal as well as the accumulated interest. ... For example, the interest amount for daily compounding will be higher than the interest amount for quarterly compounding.