Difference between revisions of "Compounding"
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| − | + | [[Compounding]] is the process of finding the future value of a single payment or series of payments. | |
==Definitions== | ==Definitions== | ||
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
| − | : | + | :[[Compounding]]. The process of finding the future value of a single payment or series of payments. |
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| + | :[[Compounding]]. The arithmetic process of determining the final value of a [[cash flow]] or series of cash flows when [[compound interest]] is applied. | ||
==Related concepts== | ==Related concepts== | ||
Latest revision as of 22:02, 1 November 2019
Compounding is the process of finding the future value of a single payment or series of payments.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Compounding. The process of finding the future value of a single payment or series of payments.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Compounding. The arithmetic process of determining the final value of a cash flow or series of cash flows when compound interest is applied.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
