The Greater the Number of Compounding Periods Within a Year

question 151

True/False

The greater the number of compounding periods within a year, then (1)the greater the future value of a lump sum investment at Time 0 and (2)the greater the present value of a given lump sum to be received at some future date.

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Definitions:

NSF Check

A check that cannot be processed due to insufficient funds in the account of the issuer.

Internal Control

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cash Shortages

Situations where the actual cash on hand is less than the expected amount, usually as a result of errors or theft.

Cash Deposit Slip

A document prepared by a depositor when making a deposit into a bank account, enumerating the cash and/or checks being deposited.