Which of the following statements is true?
A) Regardless of the value of the interest rate, increasing the compounding frequency will decrease the future value.
B) Regardless of the value of the interest rate, increasing the compounding frequency will increase the future value.
C) There is a relationship between the future value of investment and the effect of compounding frequency. At high interest rates, increases in compounding frequency will decrease the future value.
D) There is a relationship between the future value of investment and the effect of compounding frequency. At low interest rates, increases in compounding frequency will decrease the future value.
Correct Answer:
Verified
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