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5 June, 03:57

What is compounding frequency?

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  1. 5 June, 05:12
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    'Compounding frequency' means how many times interest is added to the account in one year.
  2. 5 June, 07:54
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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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