Final answer:
The frequency of compounding and the amount of money earned are directly related. As the frequency of compounding increases, the amount of money earned also increases. This is due to the effect of compound interest.
Step-by-step explanation:
The relationship between the frequency of compounding and money earned is that as the frequency of compounding increases, the amount of money earned also increases. This is due to the effect of compound interest, which is the interest earned on both the initial amount of money and the interest already earned.
When the interest is compounded more frequently, such as annually, quarterly, or monthly, the overall earnings will be higher compared to compounding annually. For example, if you have $1,000 invested at an annual interest rate of 5%, compounded annually, after 1 year you would have $1,050. But if it were compounded quarterly, you would have $1,051.16, resulting in slightly more money earned.