Simple compound growth method 


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Simple compound growth methodCalculating 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 Similar MatchesCompounding periodCompounding periodThe length of the time period that elapses before interest compounds (a quarter in the case of quarterly compounding). Compound interestCompound interestThe 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 optionCompound optionOption on an option. Compound interestCompound interestThe interest paid on the principal balance in a mortgage and on the accrued and unpaid interest of the loan. Continuous compoundingContinuous compoundingThe 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 Suggestionscompound reversionary bonusCompounding 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 
