Definition:Compound Interest Table/Accumulation Factor

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