ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In the context of the value of n, is there anything beyond being compounded daily, like hourly or by the minute?
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yes
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no
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -When the amount compounds daily, it means that the amount compounds 365 times in a year. i.e., n = 365.
Detailed explanation-2: -Compound Interest Formula r = rate of interest. n = number of times interest is compounded per year.
Detailed explanation-3: -n = the number of compounding periods. t = the time in years.
Detailed explanation-4: -Does Compounded Continuously Mean Daily? Compounded continuously means that interest compounds every moment, at even the smallest quantifiable period of time. Therefore, compounded continuously occurs more frequently than daily.
There is 1 question to complete.