Does compounding an interest rate annually yield more interest than it does monthly?

Question

Does compounding an interest rate annually yield more interest than it does monthly?

Answer 1

your asking to add interest once a year to adding it twelve times a year. mmmm  Here's the rule of 72... Take the interest you are getting on your money and divide it into 72 and that will tell you how fast your money will double.

3%  72/3=24years  If you put $10,000. in a bank and just let it sit there, just let the interest agru, it will take 24 years for it to double to $20,000.

6%   72/6=12yrs   some money mkts

12%  72/6=6yrs     Mutual funds...you have to go shopping

Answer 2

No.  The more often it is compounded the more you end up with.

Answer 3

No  Monthly compounding will give higher yield

Answer 4

More Monthly