Q5 C. (20 Marks) a) "The effect of compounding is small for a small number of periods but decreases as the number of period increases" True or False? Give examples (8 Marks) 5 b) Would you rather receive $1,000 a year for 10 years or $800 a year for 15 years if: (12 Marks) a. The interest rate is 5 percent b. The interest rate is 20 percent c. Why do your answers to (a) and (b) differ? Header