By calculating the maturity value of $100 invested for 1 year at each rate, determine which rate of return an investor would prefer.
a) 12.0% compounded monthly.
b) 12.1% compounded quarterly.
c) 12.2% compounded semi-annually.
d) 12.3% compounded annually.

Compounded Monthly

Calculating interest on both the initial principal and the accumulated interest from previous periods, done on a monthly basis.

Rate of Return

The profit or deficit experienced on an investment within a certain timeframe, depicted as a proportion of the investment's initial value.