If Interest Is Compounded Semi-Annually Rather Than Annually,then

question 57

Multiple Choice

If interest is compounded semi-annually rather than annually,then:

• A) future values and present values will both be higher.
• B) futures values and present values will both be lower.
• C) future values will be lower and present values will be higher.
• D) Future values will be higher and present values will be lower.

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Definitions:

Indra Nooyi

Former CEO of PepsiCo and notable figure in the business world, recognized for her leadership and contributions to the industry.

PepsiCo

A global food and beverage leader with a product portfolio including 22 brands that generate more than $1 billion each in estimated annual retail sales.

Soft Drink Industry

An economic sector involved in manufacturing, distribution, and sales of non-alcoholic beverages, such as sodas, juices, and carbonated drinks.

Food Industry

The sector of the economy concerned with the production, processing, and distribution of food products.