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NeTakaya
4 years ago
5

How does the amount of interest change if the compounding occurs more frequently?

Mathematics
2 answers:
777dan777 [17]4 years ago
4 0
(Nominal and effective interest rates) An interest rate takes two forms:nominal Interest rate and effective interest rate...However, if compounding is more frequent than once per year, then the effective interest rate will be greater than 10% The more often compounding occurs, the higher the effective interest rate.
liberstina [14]4 years ago
3 0

Answer:

An interest rate takes two forms: nominal interest rate and effective interest rate. ... However, if compounding is more frequent than once per year, then the effective interest rate will be greater than 10%. The more often compounding occurs, the higher the effective interest rate.

Step-by-step explanation:

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