Question: c. Will the future value be larger or smaller if we compound an initial amount more often than annuallyfor example, every six months, or semiannuallyholding

c. Will the future value be larger or smaller if we compound an initial amount more often than annuallyfor example, every six months, or semiannuallyholding the stated interest rate constant? Why? What is the effective annual rate for a simple rate of 12 percent, compounded semiannually? Compounded quarterly? Compounded daily?

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