# For a nominal rate of 6.75%, determine the compounding frequency if the periodic interest rate is: a.

## Question:

a. 0.5625%.

b. 1.6875%. Compounding

Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...

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