Question

you want to save $75 every month and put it into an account where compound growth is possible. keep in mind, though, that some accounts have lower compound growth than others.
which account typically offers the least compound growth?
choose 1 answer:
a savings account
b certificate of deposit (cd)
c brokerage account
d 401(k) at your work

Explanation:

To determine which account offers the least compound growth, we analyze the options:

• Savings accounts generally have low - interest rates and thus offer relatively low compound growth as they are designed for liquidity and safety rather than high - return growth.
• Certificates of Deposit (CDs) usually have higher interest rates than savings accounts as they require the money to be locked in for a specific period.
• Brokerage accounts are used to invest in stocks, bonds, etc., which have the potential for higher returns (and thus higher compound growth) compared to savings accounts.
• 401(k) accounts are retirement accounts that often invest in a variety of assets like mutual funds, and over the long - term, they are expected to have higher growth potential than savings accounts.

So, among these, savings accounts typically offer the least compound growth.

Answer:

A. savings account