Holding all other factors constant,increasing the frequency of the compounding period will increase the future value of an initial investment.

Name: Holding all other factors constant,increasing the frequency of the compounding period will increase the future value of an initial investment.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Compounding more frequently (such as daily or monthly instead of annually) allows for the accumulation of more interest on the initial investment, leading to a higher future value.

Holding All Other Factors Constant,increasing the Frequency of the Compounding