When it comes to interest, most cds will allow which of the following options?

Asked by maham237 @ in Advanced Placement (Ap) viewed by 2677 People

When it comes to interest, most CDs will allow which of the following options? A. Unlimited withdrawals of interest
B. Periodic interest payout
C. Withdrawal of principal
D. Loans against the principal

Answered by maham237 @


Answer: When it comes to interest, most CDs will allow Periodic interest payout (Option B)

Explanation: It means that most of the Most Certificate of Deposits will give an option to allow the interest to be reinvested that you gained from the Certificate of Deposits. As a result, it will create a larger interest amount in the future. Periodically interest rate means that the interest rate charged will be paid over a decided period of time.

Periodic interest rate = annual interest rate / number of compounding periods



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