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

The period of time between the compounding of interest. For example, if one has a bank account in which the interest is compounded monthly, then the compounding period is one month. Continuously compounded interest has no compounding period.

compounding period

The period between the points when interest is paid or when it is added to principal. For example, a quarterly compounding period indicates interest is paid or is calculated at three-month intervals.

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