"Compounding frequency" refers to
A) What type of interest your account earns
B) How often your interest is calculated and added back into your account
C) What interest rate you can expect from your account
D) How easily you can add money into your account
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"Compounding frequency" refers to (B) How often your interest is calculated and added back into your account
Step-by-step explanation:
frequency - number of periods in a year
Compounding frequency is the number of periods the interest is compound in a year.
For example:
Annual compounding - The interest is calculated once a year and added to the amount in the account every year.
Monthly compounding - The interest is calculated 12 times a year and added to the amount in the account every month.
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