Future value with different compounding frequency

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What is the future value in seven years of $1,000 invested in an account with a stated annual interest rate of 8 percent?

A. Compounded annually?
B. Compounded semi-annually?
C. Compounded monthly?
D. Compounded continuously?
E. Why does the future value increase as the compounding period shortens?

Reference no: EM1328111

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