Question: Will the future value be larger or smaller if we compound an initial amount more often than annually, for example, every 6 months, or semiannually,

Will the future value be larger or smaller if we compound an initial amount more often than annually, for example, every 6 months, or semiannually, holding the stated interest rate constant? Why?

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Assume that you are nearing graduation and that you have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination which covers several financial analysis techniques. The first section of the test addresses analysis. See how you would do by answering the following questions

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