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.


  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. All Math Words Encyclopedia. Life is a Story Problem LLC. 6/18/2018.
  • Troy Segal. Compound Interest. Investopedia. 6/18/2018.
  • Compound Interest Calculator. U.S Securities and Exchange Commission. 6/18/2018.

Cite this article as:

McAdams, David E. Accumulation Factor. 4/11/2019. All Math Words Encyclopedia. Life is a Story Problem LLC.

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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.)

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