For any interest rate and for any period of time, the more frequently interest is compounded, the greater the amount of money that has to be invested today in order to accumulate a given future amount.

Question

Quizplus · Accepted Answer

The more frequently interest is compounded, the less money needs to be invested today to accumulate a given future amount, because interest is being added to the principal more often, leading to a higher compound interest effect.

For Any Interest Rate and for Any Period of Time