Which of the following statements is CORRECT?

a. PV (i.e., Present Value) of a future lump sum will be smaller if compounded more often, holding the stated I% (i.e., nominal interest rate) constant.

b. FV (i.e., Future Value) of a lump sum will be smaller if compounded more often holding the stated I% (i.e., nominal interest rate) constant.

c. Your bank account pays an 8% nominal rate of interest. The interest is compounded quarterly. The effective rate of interest is less than 8%.