IN MATH: 1. v., adv. paying interest on both the principal and the already earned interest one or more times per year EX. With Ken's account, interest is compounded quarterly.

 See: Discrete vs Continuous  Compounding - Growing Discretely vs Continuously For example in symbols: P(t) = P0(1 + r/n)nt where P(t) is the principal, the money, in the bank account after t years.     WHY THIS FORMULA  A spreadsheet which computes Amount, principle, using compound interest

IN ENGLISH: 1. v.t. to make by combining parts. EX. Joking now will only compound the problem. 2. n. a thing made of more than 1 part. EX. The druggist can make a compound to ease the pain. 3. n. a group of buildings, often enclosed, considered as one place. EX. The wagon train formed a compound for its nightly stop.

APPLICATION: See list 120.

1. When interest is compounded quarterly, how many times each year is interest paid?

This is a page from the dictionary MATH SPOKEN HERE!, published in 1995 by MATHEMATICAL CONCEPTS, inc., ISBN: 0-9623593-5-1.   You are hereby granted permission to make ONE printed copy of this page and its picture(s) for your PERSONAL and not-for-profit use.

 © 2005, 2021, Agnes Azzolino www.mathnstuff.com/math/spoken/here/1words/c/c33.htm