Compound Interest

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Compound Interest

 

interest computed not only on an original sum but also on the interest accruing to the original sum over a preceding period.

References in periodicals archive ?
Within the process of income valuation analysis, the appraiser must select the frequency of compounding of interest in order to compute present value factors for income capitalization and discounting.
These increases in income were offset by increases in interest expense due to the compounding of interest on the Zero Coupon Convertible Subordinated Notes and an increase in the effective interest rate on the bank loan.
Net interest expense increased to $3,206,000 from $2,835,000 due to the compounding of interest on the Zero Coupon Convertible Subordinated Notes and an increase in the effective interest rate on the bank loan, offset by an increase in interest income due to an increase in the effective interest rate and principal balance of the note receivable from Cellular Communications of Puerto Rico, Inc.
the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) added section 6622 to the Code, which requires the daily compounding of interest on all amounts accruing after December 31, 1982.