Compound: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Layout) |
imported>Doug Williamson (Add link.) |
||
| Line 13: | Line 13: | ||
* [[Compounding effect]] | * [[Compounding effect]] | ||
* [[Compound interest]] | * [[Compound interest]] | ||
* [[De-compound]] | |||
* [[Effective annual rate]] | * [[Effective annual rate]] | ||
* [[Interest]] | * [[Interest]] | ||
Revision as of 15:35, 27 March 2021
To compound means:
- to calculate interest, return or growth on an accumulating total,
- including earlier amounts of interest, return or growth.
Compound interest is calculated as ‘interest on interest’ as well as interest on the original principal amount.
Compound rates of return or growth are similarly calculated based on the rolling up accumulated total amount, rather than just the initial amount.
