Answers.com > Wiki Answers > Categories > Jobs & Education > Education > School Subjects > Math and Arithmetic > What does quarterly mean in compounded interest?

What does quarterly mean in compounded interest?

In: Math and Arithmetic, Mathematical Finance, Algebra [Edit categories]

Answer:

It means that the interest is paid out every three months (quarter year). That means that the interest paid out after 3 months is earning interest for the remaining nine months. The quarterly interest rate is such that this compounding is taken into account for the "headline" annual rate. As a result, if the quarterly interest is taken out, then the total interest earned in a year will be slightly less than the quoted annual rate.

First answer by Mehtamatics. Last edit by Mehtamatics. Contributor trust: 614 [recommend contributor ]. Question popularity: 2 [recommend question].

[report abuse]

Can you answer these Math and Arithmetic questions?

	What shape has four faces and four edges?	Answer it!
	How is a cylinder different from a rectangular prism?	Answer it!
	What procedures will find the sum a plus b of two number where a and b represent any integer?	Answer it!
	What is the smallest number of acute angles in any triangle?	Answer it!
	How do you decide if the difference of two numbers is positive negative zero without calculating the difference?	Answer it!

Relevant answers:

What mean compounded quarterly?
hello
What does interests mean?
you want to learn more of what you like
What mean interest?
"03914936" and "EC1Y 8QJ"
What does interest means?
Interest=the amount paid to borrow money Interests=Things you like/are interested in.
What is compounded quarterly?
This is a term used while understanding the interest calculation for deposits. Compounded quarterly means - the interest would be compounded every quarter. Let us say you deposit $1000 in a bank @...