Compounding period

 

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Compounding period

The length of the time period that elapses before interest compounds (a quarter in the case of quarterly compounding).



Compounding period

Similar Matches

Compounding

Compounding

The process of accumulating the time value of money forward in time. For example, interest earned in one period earns additional interest during each subsequent time period.


Compounding frequency

Compounding frequency

The number of compounding periods in a year. For example, quarterly compounding has a compounding frequency of 4.


Continuous compounding

Continuous compounding

The process of accumulating the time value of money forward in time on a continuous, or instantaneous, basis. Interest is earned constantly, and at each instant, the interest that accrues immediately begins earning interest on itself.


Discrete compounding

Discrete compounding

Compounding the time value of money for separate time intervals.




 
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