PennywiseGurl16 PennywiseGurl16

17-05-2024
Business

Answered

A bank offers savings accounts that pay compound interest.
Is this a benefit for account holders?
O No, since compounding interest brings the overall balance of an account down.
O No, because compounding interest results in higher fees.
O Yes, since interest rates can fluctuate over time, compounding interest ensures slow and steady growth.
Yes, because money can grow exponentially when interest is compounded.

Answer :

GinnyAnswer GinnyAnswer

17-05-2024

Final answer:

Compound interest is advantageous for account holders as it leads to exponential growth of money over time.

Explanation:

Compound interest refers to interest earned on both the initial deposit and previously earned interest. It allows savings to grow significantly over time. In a savings account, if you leave earned interest in the account, it compounds, leading to exponential growth of your money.

Learn more about Compound Interest here:

https://brainly.com/question/14295570

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