More Frequent Compounding Results in ____ Future Values and ____

question 77

Multiple Choice

More frequent compounding results in ____ future values and ____ present values than does less frequent compounding at the same interest rate.

• A) higher; higher
• B) lower; higher
• C) higher; lower
• D) lower; lower

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Definitions:

Mutually Exclusive

Mutually exclusive events are those events that cannot occur at the same time, implying no overlap in their occurrence.

Mutually Exclusive

Events that cannot occur at the same time, implying that the occurrence of one event excludes the possibility of the other event occurring.

Independent

In statistics, refers to variables that are not affected by other variables in the context of the analysis.

Mutually Exclusive

Events or conditions that cannot occur at the same time; within the context of probability, two events that cannot both be true simultaneously.