Answer:
The provided statement is TRUE.
Step-by-step explanation:
Compounding frequency is the frequency of the interest that is paid in a year.
Higher compounding frequency will return a higher future value along with the constant investment amount and time. Therefore for investment drives higher compounding frequency is favored.
A higher compounding frequency for an investment with the same original investment and time horizon would return additional interest and profit when compared to an investment with a lower compounding frequency.
Thus, the provided statement is TRUE.
