Compounding frequency

Compounding frequency

The number of compounding periods in a year. For example, quarterly compounding has a compounding frequency of 4.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Compounding Frequency

How often the interest is added to the principal of a loan each year. The greater the compounding frequency is, the more money the lender will make from the loan. See also: Continuously compounded interest.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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