29.1k views
3 votes
An investment has the option of daily compounding, monthly compounding, or annual compounding. The present value of this investment will be lowest when the investment is compounded daily. True False

User Eejdoowad
by
4.8k points

1 Answer

3 votes

Answer:

True

Step-by-step explanation:

The statement ' An investment has the option of daily compounding, monthly compounding, or annual compounding. The present value of this investment will be lowest when the investment is compounded daily ' is true.

Investment refers to the process of investing money to earn money.

Investment refers to purchasing goods that may not be used today but are consumed in the future to create wealth.

User Panopticoncentral
by
5.2k points