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Q: "Compounding frequency" refers to

  • 1
    What type of interest your account earns
  • 2
    How often your interest is calculated and added back into your account
  • 3
    What interest rate you can expect from your account
  • 4
    How easily you can add money into your account
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Answer : 2. "How often your interest is calculated and added back into your account"
Explanation :

Answer: B) How often your interest is calculated and added back into your account Explanation: Compounding frequency : The time periods when interest will be calculated on top of the original loan amount (or) The number of compounding periods in one year.   The greater the compounding frequency, the more often your interest is calculated and added back into your account.

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