Answer:
Option A: Investments with smaller compounding intervals have a higher yield, because the interest earned is reinvested more quickly and thus gains compound interest more quickly
Step-by-step explanation:
Compounding could be done monthly, quarterly, semiannually or annually. Compound interest is simply when we add the interest to the principal sum of a loan or amount deposited. It's also referred to as interest which is accrued on interest.
The compound interest that will be earned mainly depends on the frequency of compounding. Now compounding could be done monthly, quarterly, biannually or annually. Now, If we compound monthly, we will have a higher interest return than if we compounded annually.
Thus, looking at the options, the correct one is Option A
