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Q1. In this task we consider the continuous vs Simple compounding. In the exercises we have seen how to move from one method to the
Q1. In this task we consider the continuous vs Simple compounding. In the exercises we have seen how to move from one method to the other. Say R_c is the continuously compounded rate per annum, and R_m is the simply compounded rate (compounded m times per year), applying to the same time period (eg, 2020). Which of the following two are true? A. R_c is smaller than R_m B. R_m is smaller than R_C C. In general, if m is smaller than n (less compounding periods per annum), then R_m is greater than R_n D. In general, if m is smaller than n (less compounding periods per annum), then R_m is less than Run
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