Q. If interest is paid more than once in a year, ‘i’ is the rate of interest per year, ‘n’ is the number of periods in years and ‘m’ is a number of periods per years, compound amount factor (CAF) is: (Solved)

1. (1 + i/m)n

2. (1 + i/n)m

3. (1 + i/n)1/m

4. (1 + i/m)1/n

  • a. (1 + i/m)n
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