313.11
11. If you put money in the bank for 10 years at 6% APR compounded quarterly, you will have more money at the end than if you got 6% APR compounded annually. Why is that? (4)
See topic 2. When your compounding period is more frequent, you earn interest more frequently. That allows you to earn interest on interest earlier and more frequently, allowing your money to grow more rapidly. The difference between the two scenarios is due solely to the more frequent compounding (interest on interest). A full credit answer had to not only identify the more frequent compounding, but explain how interest on interest built more frequently to leave you with more total money at the end.