Answer:
False
Explanation:
To illustrate this effect, consider the following example given the above formula. Assume that an investment of $1 million earns 20% per year. The resulting future value, based on a varying number of compounding periods, is:
Annual compounding (n = 1): FV = $1,000,000 x [1 + (20%/1)] (1 x 1) = $1,200,000
Semi-annual compounding (n = 2): FV = $1,000,000 x [1 + (20%/2)] (2 x 1) = $1,210,000
Quarterly compounding (n = 4): FV = $1,000,000 x [1 + (20%/4)] (4 x 1) = $1,215,506
Monthly compounding (n = 12): FV = $1,000,000 x [1 + (20%/12)] (12 x 1) = $1,219,391
Weekly compounding (n = 52): FV = $1,000,000 x [1 + (20%/52)] (52 x 1) = $1,220,934
Daily compounding (n = 365): FV = $1,000,000 x [1 + (20%/365)] (365 x 1) = $1,221,336
