Question: How does the frequency of compounding affect the EAR, assuming the stated cinnual rate remains constant? Increased compounding frequency leads to a higher EAR. Increased

How does the frequency of compounding affect the EAR, assuming the stated cinnual rate remains constant?
Increased compounding frequency leads to a higher EAR.
Increased compounding frequency leads to a lower EAR.
The frequency of compounding has no effect on the EAR.
The effect of compounding frequency on EAR is unpredictable.
How does the frequency of compounding affect the

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