Which one of the following compounding periods will yield the smallest present value given a stated future value and annual percentage rate?

Name: Which one of the following compounding periods will yield the smallest present value given a stated future value and annual percentage rate?
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Question

Quizplus · Accepted Answer

Continuous compounding results in the smallest present value as it compounds interest continuously throughout the year, resulting in a smaller present value compared to compounding at any other frequency.

Which One of the Following Compounding Periods Will Yield the Smallest