The more frequently interest is compounded, the larger will be the final or terminal amount.

Name: The more frequently interest is compounded, the larger will be the final or terminal amount.
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Question

​The more frequently interest is compounded, the larger will be the final or terminal amount.

Quizplus · Accepted Answer

This statement is true because compounding interest more frequently means that the interest earned in each period will be added to the principal, and the interest earned on that new amount will be higher than if the interest was compounded less frequently. Therefore, the final amount will be larger.

​The More Frequently Interest Is Compounded, the Larger Will Be

The More Frequently Interest Is Compounded, the Larger Will Be