Which One of the Following Compounding Periods Will Yield the Smallest

question 72

Multiple Choice

Which one of the following compounding periods will yield the smallest present value given a stated future value and annual percentage rate?

• A)annual
• B)semi-annual
• C)monthly
• D)daily
• E)continuous

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Definitions:

Entrepreneurs

Individuals who organize and operate businesses, taking on greater than normal financial risks in order to do so.

3 Fs

often refers to the informal investors in early-stage startups: friends, family, and fools, who provide initial capital.

Raise

The act of collecting or soliciting funds or resources, often for a business venture or project.

Due Diligence Period

A set timeframe during which detailed investigation and evaluation is conducted before entering into an agreement or transaction.