Which of the Following Statements Is True

question 73

Multiple Choice

Which of the following statements is true?

• A) Regardless of the value of the interest rate, increasing the compounding frequency will decrease the future value.
• B) Regardless of the value of the interest rate, increasing the compounding frequency will increase the future value.
• C) There is a relationship between the future value of investment and the effect of compounding frequency. At high interest rates, increases in compounding frequency will decrease the future value.
• D) There is a relationship between the future value of investment and the effect of compounding frequency. At low interest rates, increases in compounding frequency will decrease the future value.

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