Annual compounding
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Annual compounding is the arithmetic process of determining the final value of a cash flow or series of cash flows when interest is added once a year.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Annual compounding. The arithmetic process of determining the final value of a cash flow or series of cash flows when interest is added once a year.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
