In this video, we will look deeper into the principles of compounding interest with different compounding periods

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01:00 – Different compounding periods
02:00 – Compounding yearly, quarterly, monthly, weekly and daily
03:40 – Application on daily compounding
05:05 – Conclusions

Compounding of interest is not only done yearly but it can also be done over different periods like quarterly, monthly, weekly, and daily.

Understanding the principles of compounding interest with different compounding periods is important because different compounding periods can be applied in different situations

In the video, we will also apply this to an exercise where we apply daily compounding over a one-year period of 365 days and will see what the effect on the yearly interest rate is.

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