compounding period

Definition

The amount of time that elapses between when interest was last compounded and the next time it is compounded. For example, quarterly compounding indicates that a quarter of a year will elapse before interest is compounded again.

Use compounding period in a sentence

The compounding period was not known by me, so I asked someone to figure it out for me and tell me.

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You should try to make sure that you are doing things to make your company better while you are in the compounding period.

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The compounding period on the loan was monthly. So they knew that each month additional interest would be added to the account.

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modified duration compounding frequency