Accumulation Factor

Pronunciation: /ə ˌkjuːmjəˈ leɪ ʃn ˈfæk tər/ Explain

Accumulation factor is the quantity in the formula for compound interest: . i is the annual interest rate, n is the number of compounding periods per year, P0 is the starting principle, and m is the number of years. Accumulation factor measures the rate at which principal grows.

More Information

  • McAdams, David E.. Interest. allmathwords.org. All Math Words Encyclopedia. Life is a Story Problem LLC. 6/18/2018. http://allmathwords.org/en/i/interest.html#compound.
  • Troy Segal. Compound Interest. www.investopedia.com. Investopedia. 6/18/2018. https://www.investopedia.com/terms/c/compoundinterest.asp.
  • Compound Interest Calculator. www.investor.gov. U.S Securities and Exchange Commission. 6/18/2018. https://www.investor.gov/additional-resources/free-financial-planning-tools/compound-interest-calculator.

Cite this article as:

McAdams, David E. Accumulation Factor. 6/18/2018. All Math Words Encyclopedia. Life is a Story Problem LLC. http://www.allmathwords.org/en/a/accumulationfactor.html.

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Revision History

6/12/2018: Removed broken links, updated license, implemented new markup. (McAdams, David E.)
6/26/2010: Initial version. (McAdams, David E.)

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