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)]],
:
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:[[Compounding]]. The process of finding the future value of a single payment or series of payments.
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According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]],
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:[[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

Related lectures