Question: imves iment earning 8 percent compounded annually? Would the future value be larger or smaller if the compounding period was 6 months? How much more

 imves iment earning 8 percent compounded annually? Would the future value

imves iment earning 8 percent compounded annually? Would the future value be larger or smaller if the compounding period was 6 months? How much more or less sould they have earned with this shorte cornpounding period? Glick on the table icon to view the FVIF table: Would the future value be larger or smaller if the compounding pericd was 6 months? (Select the best choice below.) A. Srmaller. The greater the number of compounding periods per year, the smaller the impact of cormpourd interest, all else exual. B. Larger. The greater the number of compounding periods per year, the larger the impact of compound interest, all else equal. C. Equal. The number of compounding penods per yeer does not influence the future value. The edditional amount they would heve eerned with this shorter compounding period is t (Round to the neerest cent.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!