Answer:
option a. annual compounding
Explanation:
As compounding means that an investment is growing with accumulated interest and earning interest on previously accrued interest that becomes part of the total investment pool, if the compounding is annual it means that this process would only happen once in a year, that means that the result (as well as the present value) will be less than if it happens quarterly, monthly or daily since the investment growing happens just one time per year.
