For the same annual percentage rate, more frequent compounding increases the future value of an investor's funds more quickly.

Name: For the same annual percentage rate, more frequent compounding increases the future value of an investor's funds more quickly.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is true because compounding more frequently means that the interest earned during each compounding period is added to the principal, allowing for greater growth over time.

For the Same Annual Percentage Rate, More Frequent Compounding Increases