If $11,000,000 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 choice:
A) compounding annually
B) compounding daily
C) compounding monthly
D) compounding quarterly
E) All four of these would produce the same total
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   Answer = compounding daily
<result>B</result>
If $11,000,000 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?