If, as an investor, you had a choice of daily, monthly, or quarterly compounding, which would you choose? Why?© BrainMass Inc. brainmass.com March 4, 2021, 6:01 pm ad1c9bdddf
As an investor I would choose daily compounding.
To see why this is so assume an investment of $ 1000 for a period of 1 year at the interest rate of 10%
^ denotes power
1) Daily compounding
Interest rate= 10%
Daily interest ...
Answers which is best-daily, monthly or quarterly compounding with the help of an illustration.