More frequent compounding results in ____ future values and ____ present values than does less frequent compounding at the same interest rate.
A) higher; higher
B) lower; higher
C) higher; lower
D) lower; lower

Question

Quizplus · Accepted Answer

More frequent compounding results in higher future values because interest is being calculated and added to the principal more often, leading to compound interest growing more rapidly. It results in lower present values because a given future amount is discounted more times, reducing its present value.

More Frequent Compounding Results in ____ Future Values and ____

More Frequent Compounding Results in Future Values and