What is compounding frequency?

2 answers:

8 0

For example, monthly capitalization with annual rate of interest means that the compounding frequency is 12, with time periods measured in years. The effect of compounding depends on: The nominal interest rate which is applied and. The frequency interest is compounded.

Lorico [155]2 years ago

4 0

'Compounding frequency' means how many times interest is added to the account in one year.

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