Rank each interest rate and compounding scheme in order from highest yield to lowest yield. 1. 8%

Question:

Rank each interest rate and compounding scheme in order from highest yield to lowest yield.

1. 8% compounded quarterly, 8% compounded monthly, 8% compounded annually?

2. 6% compounded continuously, 6% compounded semiannually, 6% compounded monthly?

Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...