Asked by
Tenley Cavanagh
on Nov 08, 2024
Verified
The future value of a single sum will increase more rapidly when the frequency of compounding increases.
Frequency of Compounding
The number of times interest is added to the principal balance of an investment or loan per time period, affecting the total interest earned or paid.
Future Value
The value of a current asset at a specified date in the future based on an assumed rate of growth.
- Understand the impact of frequency of compounding on investment growth.
Verified Answer
MP
Learning Objectives
- Understand the impact of frequency of compounding on investment growth.
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