The _________________ frequently interest is compounded,the _________________ the yield.
A) More; lower
B) More; higher
C) Less; higher
D) Less; same

Question

Quizplus · Accepted Answer

When interest is compounded more frequently, the yield will be higher. This is because more frequent compounding allows the interest to earn interest more frequently, leading to a higher overall return. Conversely, less frequent compounding will result in a lower overall return. Therefore, Choice B is the correct answer.

The _________________ Frequently Interest Is Compounded,the _________________ the Yield

The _ Frequently Interest Is Compounded,the _ the Yield