compounding period

compounding period definition - business

compounding period

The interval at which interest is paid or is added to principal. For example, a quarterly compounding period indicates interest is paid or is calculated at three-month intervals.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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