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4 January, 08:15

Why is compounding interest monthly better than yearly?

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  1. 4 January, 10:46
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    More interest payments on yearly computing.

    Explanation:

    It is generally said that if you can get monthly annual payments compared to yearly payments take it without a thought. This statement explains a lot; normally month payments are not available, but in some case they are. In annual payments, 12 months are compounded that is why it is higher rate compared to monthly. So, monthly payments are preferred
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