With continuous compounding, the ____.
A) effective rate is higher than the nominal rate
B) effective rate is higher than the logarithmic rate
C) base "e" is the effective rate
D) All of these are correct

Question

Quizplus · Accepted Answer

With continuous compounding, the effective rate is higher than the nominal rate because the interest is being compounded infinitely many times per year, resulting in a higher overall return.

With Continuous Compounding, the ____