 # Simple compound growth method Home  Site Map  Add Term  Search  About Us  Contributors # Simple compound growth method

Calculating a growth rate by relating terminal value to initial value and assuming a constant percentage annual rate of growth between the two values.

Simple compound growth method

# Compounding period

Compounding period

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

# Compound interest

Compound interest

The process by which interest earned on an investment is added back to the amount invested, so increasing the amount of 'principal' on which further interest will be earned in future years.Compounding is sometimes described as the miracle of investing. The fact is that if you reinvest income in your portfolio, you will end up with a much larger amount than if you spend the income as you go along because of the effect of compounding. But to allow compounding to work its magic, you have to start young.Albert Einstein, when asked what he considered to be mankind's greatest invention, replied 'Compound interest!'

# Compound option

Compound option

Option on an option.

# Compound interest

Compound interest

The interest paid on the principal balance in a mortgage and on the accrued and unpaid interest of the loan.

# 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.

# Further Suggestions

compound reversionary bonus
Compounding frequency
Realized compound yield
Discrete compounding
Compound Annual Return
Compound interest
Compound growth rate
compound annual growth rate
Compound tariff
Compounding
Compound Annual Growth Rate