Finance
Compounding frequency refers to how often interest is calculated and added to the principal balance of an investment or loan over a specific period. This concept is crucial in understanding the time value of money, as it directly affects the total amount of interest earned or paid. The more frequently interest is compounded, the greater the total return on an investment or the higher the cost of borrowing over time.
congrats on reading the definition of Compounding Frequency. now let's actually learn it.