Can someone explain the term "Compounding Annually" in maths related to compound interests? Thanks!?

GRE Quant Problem Solving
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I have attached the screenshot of the problem here.

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https://www.cuemath.com/commercial-math/compound-interest/

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So when Jane puts 2000 in an account at 6% interest, the earned interest will be added to the the amount in her account each year. If it would compound every quarter, the earned interest would be added to the amount in her account every quarter.

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