Fill in the blank: Compounding period is the _______ time unit over which interest is charged...

Question

Question

Fill in the blank: Compounding period is the _______ time unit over which interest is charged or earned.

maximum

average

shortest

longest

business economics

Answer 1

Answer #1

Option C

Compounding period is the shortest time unit over which interest is charged or earned.
The compounding period is the period in which interest is paid from one period to the next.
It is the time period from when an interest was last compounded and when it can be compounded again.
For example 5% per year compounded monthly.

Answer 2

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