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Discrete compounding |
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Definition of Discrete compoundingDiscrete compoundingcompounding the time value of money for discrete time intervals. Discrete CompoundingThe process of adding interest to a principal plus interest amount
Related Terms:CompoundingThe process of accumulating the time value of money forward in time. For example, interest compoundingWhen an asset generates earnings that are then reinvested and generate their own earnings. Compounding frequencyThe number of compounding periods in a year. For example, quarterly Compounding periodThe length of the time period (for example, a quarter in the case of quarterly compounding periodthe time between each interest computation Continuous compoundingThe process of accumulating the time value of money forward in time on a Continuous CompoundingThe process of continuously adding interest to a principal plus discrete lossa reduction in units that occurs at a specific Discrete order pickingA picking method requiring the sequential completion of Discrete random variableA random variable that can take only a certain specified set of discrete possible
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