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When it comes to interest, most cds will allow which of the following options? a. unlimited withdrawals of interest b. periodic interest payout c. withdrawal of principal d. loans against the principal
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For interest, most CDs will allow periodic payment of interest (Option B)
Explanation: This means that most of the Largest Certificate of Deposit will provide an option to reinvest the interest you have earned from reinvesting the Certificate of Deposit. As a result, it will generate a greater amount of interest in the future. Periodic interest rate means that the interest rate charged will be paid over a specified period of time.
Periodic interest rate = annual interest rate / number of compounding periods