Question

With compound interest, what happens when you start compounding more and more frequently?

a. there is no correlation between compound c. the computed value gets larger
interest and the computed value
b. the computed value stays the same d. the computed value gets smaller
Please select the best answer from the choices provided
A
B
ОООС

Answer 1

The further compounding cycles in a given year, the greater the effect on the valuation of potential investment. Therefore, the more interest-posting dates, irrespective of the interest rate, the more compounding raises the account balance.

Explanation:

Answer 2

C

the computed value gets larger

Explanation: