Doubling the frequency of compounding in a compound interest investment ________ double the amount of the interest.
A)will
B) will not

Question

Doubling the frequency of compounding in a compound interest investment ________ double the amount of the interest. ​
A)will
B) will not

Quizplus · Accepted Answer

Doubling the frequency of compounding increases the amount of interest earned, but it does not double the interest. The effect of compounding more frequently is to increase the interest, but the increase is less than double due to the nature of exponential growth in compound interest calculations.

Doubling the Frequency of Compounding in a Compound Interest Investment