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Compounding Frequencies

The compounding frequency determines how often accrued interest is added to the principal, which then earns interest itself.

LibreFolio supports the following frequencies for compound interest calculations:

  • ANNUAL: Compounded once per year.
  • SEMIANNUAL: Compounded twice per year.
  • QUARTERLY: Compounded four times per year.
  • MONTHLY: Compounded twelve times per year.
  • DAILY: Compounded 365 times per year.
  • CONTINUOUS: Compounded infinitely. The formula for continuous compounding is:
\[ A = P \times e^{rt} \]