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14 November, 00:29

What is compounding frequency?

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  1. 14 November, 00:32
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    'Compounding frequency' means how many times interest is added to the account in one year.
  2. 14 November, 00:52
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    For example, monthly capitalization with annual rate of interest means that the compounding frequency is 12, with time periods measured in years. The effect of compounding depends on: The nominal interest rate which is applied and. The frequency interest is compounded.
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