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:

A. $${\left( {1 + \frac{{\text{i}}}{{\text{m}}}} \right)^{\text{n}}}$$

B. $${\left( {1 + \frac{{\text{i}}}{{\text{n}}}} \right)^{\text{m}}}$$

C. $${\left( {1 + \frac{{\text{i}}}{{\text{n}}}} \right)^{\frac{1}{{\text{m}}}}}$$

D. $${\left( {1 + \frac{{\text{i}}}{{\text{m}}}} \right)^{\frac{1}{{\text{n}}}}}$$

Answer: Option A