If $10,000,000 is the initial amount placed in an account that collects 7% annual interest, which of the following compounding rates would produce the largest total amount after two years?
Choose the correct answer: A) compounding annually B) compounding quarterly C) compounding daily D) compounding monthly E) All four of these would produce the same total
Answer = C Compounding daily   This will produce the maximum yield as the interest accured each day will be added the very next day to the Principal amount for further computation of interest.   This process will be repeated every day till the amount matures   compounding dailyompounding annually will give least returns
<result>C</result>
If $10,000,000 is the initial amount placed in an account that collects 7% annual interest, which of the following compounding rates would produce the largest total amount after two years?