When to use if the compounding period is more or perhaps, Finance Basics

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When to use if the compounding period is more or perhaps

Question: Less than annual compounding periods.

When to use: If the compounding period is more (or perhaps less) frequent than once a year. Sample problem: You invest $1,000 compounded semiannually at 8 percent per annum over four years. Determine the future value.

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Finance Basics: When to use if the compounding period is more or perhaps

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Finance Basics: When to use if the compounding period is more or perhaps

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