This is misleading because everything you compare it to does compound. When people talk about an interest rate, a growth rate, an inflation rate .. everything

This is misleading because everything you compare it to does compound. When people talk about an interest rate, a growth rate, an inflation rate .. everything compounds. If you're saying 5% of some special non compounding thing thats misleading to people without financial literacy to compare to every other rate they read. So it's more correct to say 3.53%.