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When compounding happens more often within a year, the interest income is received:
AAfter ten years
BOnly at maturity
COnly on closure
DDuring the year
Answer & Solution
Correct answer: D. During the year
1. Annual compounding waits for year end.
2. More frequent compounding does not.
3. It is received during the year.
_Source: OpenStax Principles of Finance 2e, Chapter 7, Time Value of Money I._
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