The correct answer is A. One time compounding.
Compounding is the process of adding interest to the principal amount of a loan or investment, and then calculating interest on the new total amount. The more often interest is compounded, the higher the final amount will be.
One time compounding is the simplest type of compounding. Interest is only calculated once, at the end of the investment period. This means that the final amount will be less than if interest had been compounded more often.
Annual compounding is a type of compounding that occurs once per year. Interest is calculated on the principal amount, and then added to the principal amount at the end of the year. This means that the final amount will be more than if interest had only been compounded once.
Semi-annual compounding is a type of compounding that occurs twice per year. Interest is calculated on the principal amount, and then added to the principal amount twice per year. This means that the final amount will be more than if interest had only been compounded annually.
Monthly compounding is a type of compounding that occurs once per month. Interest is calculated on the principal amount, and then added to the principal amount once per month. This means that the final amount will be more than if interest had only been compounded semi-annually.
In conclusion, the future value of interest if it is calculated once a year is classified as one time compounding.