(Answered) What does this mean Wgeb dealing with present value a higher interest rateWhat does this mean Wgeb…

➤ Can compounding frequency affect present value when interest rates are higher?
Yes. More frequent compounding increases the effective interest rate even if the nominal rate stays the same. A higher effective rate increases discounting and reduces present value. Convert nominal rates to effective rates or use per-period rates that match the compounding frequency for accurate PV calculations.