For a given stated rate of interest, a sum compounded monthly will earn more interest than a sum compounded annually.

Name: For a given stated rate of interest, a sum compounded monthly will earn more interest than a sum compounded annually.
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Question

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When interest is compounded more frequently (e.g., monthly) rather than annually, it results in earning interest on the interest more often, leading to a higher total amount of interest earned over the same period.

For a Given Stated Rate of Interest, a Sum Compounded