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ki77a [65]
4 years ago
7

Everything else equal, which of the following conditions will result in the lowest present value of an amountto be received in t

he future?a. annual compoundingb. quarterly compoundingc. monthly compoundingd. daily compounding
Business
1 answer:
Genrish500 [490]4 years ago
3 0

Answer:

option a. annual compounding

Explanation:

As compounding means that an investment is growing with accumulated interest and earning interest on previously accrued interest that becomes part of the total investment pool, if the compounding is annual it means that this process would only happen once in a year, that means that the result (as well as the present value) will be less than if it happens quarterly, monthly or daily since the investment growing happens just one time per year.

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Its always a competition

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People use to complete on how the world gets and receives items same in business, companies compeate all the time trying to get the most money, visitors, and promotions.

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3 years ago
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