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1(a). (TRUE or FALSE?) The smallest compounding period is used when we do continuous compounding. 1(b).(TRUE...

1(a). (TRUE or FALSE?) The smallest compounding period is used when we do continuous compounding.

1(b).(TRUE or FALSE?) The annuity is a series of unequal cash flows, spaced unevenly over time.

1(c).(TRUE or FALSE?) Money grows over time when the interest rate is zero.

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Answer #1

True , The smallest compounding period is used when we do continuous compounding because It is an extreme case of compounding, interest is calculated and added to the account's balance every infinitesimally small instant

False, The annuity is a series of unequal cash flows, spaced unevenly over time because An annuity is a series of equal cash flows paid at equal time intervals for a finite number of periods

False, Money grows over time when the interest rate is zero because money only grow when interest rate is greater than zero and time value of money can not be effected.

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