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 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.

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.

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compound interest

The safe harbor interest rate is 150% of the highest AFR, at the appropriate compounding period in effect at any time beginning when the right to the guaranteed payment for capital is first established through the end of the tax year.

Structuring guaranteed payments to avoid disguised sale treatment by Ellentuck, Albert B. / The Tax Adviser

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