Question 4 (1 point) Interest per compounding period of a compound interest investment is found by dividing the annual interest rate by the number of compounding periods per year. True False

## Step 1: Understanding Compound Interest<br />### Compound interest is calculated on the principal amount plus any accumulated interest. The interest earned in each compounding period is added to the principal, and subsequent interest calculations are based on this new, larger principal. Therefore, to find the interest for a specific compounding period, we need to divide the annual interest rate by the number of compounding periods per year.<br /><br />## Step 2: Analyzing the Statement<br />### The statement "Interest per compounding period of a compound interest investment is found by dividing the annual interest rate by the number of compounding periods per year" accurately describes the process of determining the interest applied in each compounding period.