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Time Value of Money

A basic concept in finance maintaining that a currency unit today is not worth the same currency unit tomorrow or…

Compound Interest

The interest that results from adding interest to the principal amount (loan, deposit, debt, etc). In this sense, interest earned...

Compounding

A technique which is used to convert an interest rate of a given period into an interest rate of a...

Compounding Interest Rate

A technique which is used to convert an interest rate of a given period into an interest rate of a...

Annual Compounding

The compounding of interest earned or paid on an interest-bearing instrument (e.g., bond, deposit, etc), or generally any type of...

Simple Compounding

The method of compounding interest rate without taking into account the interest earned over the period in question. Interest only...

Decompounding

A technique which is used to convert an interest rate of a given period into an interest rate of a...

Simply Compounded

The interest rate is said to be simply compounded (simple compounding) if it is paid at the end of the...

Quarterly Compounding

The compounding of interest earned or paid on an interest-bearing instrument (e.g., bond, deposit, etc), or generally any type of...

Decompounding Interest Rate

A technique which is used to convert an interest rate of a given period into an interest rate of a...