Accumulation Factor

Pronunciation: /ə.ˌkjuːm.jə.ˈleɪ.ʃən 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.

References

1. McAdams, David E.. All Math Words Dictionary, accumulation factor. 2nd Classroom edition 20150108-4799968. pg 10. Life is a Story Problem LLC. January 8, 2015. Buy the book

More Information

• McAdams, David E.. Interest. allmathwords.org. All Math Words Encyclopedia. Life is a Story Problem LLC. 6/18/2018. https://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. 4/11/2019. All Math Words Encyclopedia. Life is a Story Problem LLC. https://www.allmathwords.org/en/a/accumulationfactor.html.

Image Credits

• All images and manipulatives are by David McAdams unless otherwise stated. All images by David McAdams are Copyright © Life is a Story Problem LLC and are licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Revision History

4/11/2019: Changed equations and expressions to new format. (McAdams, David E.)
12/21/2018: Reviewed and corrected IPA pronunication. (McAdams, David E.)
6/12/2018: Removed broken links, updated license, implemented new markup. (McAdams, David E.)
6/26/2010: Initial version. (McAdams, David E.)