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What was the purpose of the Incan quipu?

to keep record


Which compounding period has the highest effective annual rate?

The effective annual rate (EAR) increases with more frequent compounding periods. Therefore, continuous compounding yields the highest effective annual rate compared to other compounding intervals such as annually, semi-annually, quarterly, or monthly. This is because continuous compounding allows interest to be calculated and added to the principal at every possible moment, maximizing the effect of interest on interest.


How does the frequency of interest compounding regardless of the rate of interest or period of accumulation affect the future value of any given amount?

The frequency of interest compounding significantly impacts the future value of an investment, as more frequent compounding results in interest being calculated and added to the principal more often. This leads to interest being earned on previously accrued interest, accelerating the growth of the investment. For example, compounding annually will yield a lower future value than compounding monthly or daily, even with the same interest rate and time period. Hence, increasing the compounding frequency enhances the overall returns on an investment.


What is the synonym for multiplication?

compounding, repetition, reproduction, recurrence, repeating,


Why the proses of discounting and compounding are related?

Discounting and compounding are related because both processes involve the time value of money, reflecting how the value of money changes over time. Compounding calculates the future value of an investment by applying interest over time, while discounting determines the present value of future cash flows by removing the effects of interest. Essentially, discounting is the reverse of compounding; where compounding grows an amount, discounting reduces it to its present value, both using the same interest rate concept. Together, they provide a comprehensive understanding of how money behaves over time in financial contexts.

Related Questions

Mechanics of compounding in an annuity?

mechanics and compounding


Does annual compounding pay more money than daily compounding?

It all depends with the amount of the annual or daily compounding. In most cases it is however the daily compounding that pays more than the annual compounding.


For the court's purpose if documentation does not appear in the medical record?

For the court's purpose, if documentation does not appear in the medical record


What is the purpose of keeping a record of whether and treatments work effectively?

What is the purpose of keeping a record of whether medication


What is the necessary of compounding in turbines?

compounding of turbines is necessary to make the turbines practically controllable.If compounding is not done the size of the turbine will be huge.Hence by pressure &velocity compounding the turbine becomes small in size &its velocity is also becomes controllable.


How can you find a compounding pharmacy in Mexico?

names and phone of compounding pharmacies in Mexico City


What was the original purpose of a CD?

To record music.


What was the purpose of the Incan quipu?

to keep record


Where interest is compounded continuously?

I think most banks use daily compounding, but you could use the continuous compounding to approximate daily compounding and be off by less than 0.2%


What is the word that means the act or process of recording information in a register or record?

The words record, register and file can be used to describe the entry of documents or information for the purpose of creating a record.The words record, register and file can be used to describe the entry of documents or information for the purpose of creating a record.The words record, register and file can be used to describe the entry of documents or information for the purpose of creating a record.The words record, register and file can be used to describe the entry of documents or information for the purpose of creating a record.


What is the purpose of journal entry?

A journal records what you're findings are


Where is continuously compounded interest used?

I think most banks use daily compounding, but you could use the continuous compounding to approximate daily compounding and be off by less than 0.2%