Answer
Plan compounding 4 times a year because it is cheaper.
Work Step by Step
Compounding is the number of times a year interest is collected.
If your loan is compounded 4 times a year, interest is collected 4 times a year.
If your loan is compounded 12 times a year, interest is collected 12 times a year.
The loan plan compounding 4 times a year is a better choice because the interest is collected 4 times a year rather than 12, which saves money.
