Definition:Compound Interest Table/Accumulation Factor
< Definition:Compound Interest Table(Redirected from Definition:Accumulation Factor)
Jump to navigation
Jump to search
Definition
Let $P$ be a principal invested under compound interest with an interest rate $r$ over a number of conversion periods $n$.
The accumulation factor of $P$ is defined as:
- $\paren {1 + r}^n$
This is the amount to which $1$ unit of $P$ will increase to after $n$ conversion periods at interest rate $r$
Also see
- Results about accumulation factors can be found here.
Sources
- 1998: David Nelson: The Penguin Dictionary of Mathematics (2nd ed.) ... (previous) ... (next): accumulation factor
- 1998: David Nelson: The Penguin Dictionary of Mathematics (2nd ed.) ... (previous) ... (next): interest
- 2008: David Nelson: The Penguin Dictionary of Mathematics (4th ed.) ... (previous) ... (next): accumulation factor
- 2008: David Nelson: The Penguin Dictionary of Mathematics (4th ed.) ... (previous) ... (next): interest